The renminbi (RMB) has appreciated significantly over the past six months as US dollar weakens. SMU Associate Professor of Finance Fu Fangjian pointed out that the People's Bank of China (PBoC) has not followed suit with easing measures, but rather maintained policy restraint under deflationary pressures, with its core objective of maintaining the overall stability of the RMB exchange rate. He stressed that China's main trading partners are currently ASEAN, the European Union, and the US, therefore the PBoC will not solely rely on US dollar in its exchange rate management, but will pay more attention to the overall performance of RMB against a basket of currencies.
