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The Central Bank published an article: observation of the RMB exchange rate to a basket of currencies

for a long time, MarketWatch angle of RMB exchange rate is mainly look at the bilateral exchange rates of the Yuan against the dollar, due to exchange rate fluctuations to regulate various trading partners on trade and investment, thus only observe the Yuan/dollar bilateral exchange rate does not fully reflect the international terms of trade.

in other words, the RMB exchange rate should be not only the dollar as a reference, but also with reference to a basket of currencies. Exchange rate indices as a weighted average of exchange rates, mainly used for computing a weighted average of the country's currency against a basket of foreign currencies exchange rate changes, to more fully reflect the value of a currency changes. Compared with the reference of the single currency with reference to a basket of currencies, better reflect the overall competitiveness of a country's goods and services, can also play the role of exchange rate regulation of imports and exports, investment and the balance of payments.

CFETS RMB exchange rate index published for market observation provides a measurement of the RMB exchange rate in order to more fully and accurately reflect the market situation changed. From international experience, exchange rate indices published by the monetary authorities, such as the Federal Reserve, the European Central Bank, the Bank of England, have issued their own currency exchange rate indices also issued by the Agency, such as the

Intercontinental Exchange (ICE) released the dollar index has become an important international market index. The China foreign exchange trading center for RMB exchange rate index in line with international practices. 2015, the CFETS trend of RMB exchange rate index is relatively stable, November 30 to 102.93, 2.93% appreciation of the end of 2014.

This suggests that, although since 2015 and the Renminbi exchange rate against the dollar, but from the perspective of a more comprehensive appreciation of the Yuan against a basket of currencies is still small, in major international currencies the Yuan remains a strong currency. China foreign exchange Trade Center CFETS RMB exchange rate index published on a regular basis, will help lead the market changed focus on bilateral exchange rates of the Yuan against the dollar in the past habits, increasingly effective exchange rate calculated with reference to a basket of currencies as the main frame of the RMB exchange rate level, is conducive to maintaining the RMB exchange rate basically stable at a reasonable and balanced level.

for the purpose of market of RMB effective exchange rate changes from different angles, China foreign exchange Trade Center also lists the BIS reference currency basket, the SDR currency basket of the Renminbi exchange rate index, at the end of November, both index may rise by the end of 2014 and 1.56%, respectively.

 

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