Chinanews, Beijing, Nov. 14 – Ms. Zhao, a local resident in Beijing, went to a bank last weekend as soon as her 20,000-US dollar deposit had reached maturity: she wanted to exchange her US dollars savings into Renminbi.

 

“I bought these US dollars when the exchange rate of the dollar against the yuan was still around 1:9 several years ago. Now, the Renminbi appreciation process has quickened, and it does not make any sense for me to keep my US dollar savings,” she said.

 

She was not the only one with such thinkings. Now, most Chinese believe that Renminbi value will “keep on rising in future.”

 

On Monday, the yuan's exchange rate against the dollar hit a new high point to reach 7.414:1. Since China kicked off the exchange rate regime in July 2005, Renminbi value has risen by 9.4 percentage points in total.

 

Jing Ulrich, JP Morgan Chase's market manager in China, predicted that in future, Renminbi value would rise by 5% every year. This would mean that in future, Renminbi value would continue to rise gradually yet continually.

 

However, it seems that Renminbi's appreciation process has become faster recently. This is caused by both internal and external factors. In global market, US dollar value has gone down quickly, which on the other hand has pushed up Renminbi value. In domestic market, trade surplus had increased by nearly 60% during the first ten months of this year and foreign exchange reserves had also kept on rising. All these have caused Renminbi value to rise at a much faster pace than before.