Foreign customers have recently found that prices have begun to fall from the original basis, mainly due to the depreciation of the exchange rate.
From April 20 to May 16, the domestic EXCHANGE rate of RMB against US dollar dropped from 6.38 to 6.80, with a cumulative depreciation rate of 6.2%.
Rapid declines have been rare in China's foreign exchange market for two years. However, the onshore and offshore RMB returned to the 6.70 level again in these two days.
In addition, it should be noted that since the beginning of this year, in the case of the DOLLAR index rose about 9%, euro, yen, pound and other major currencies against the DOLLAR exchange rate depreciation in the 8%-10% or so, the devaluation of these countries, buyers of the desire to purchase.
 
In an interview with Xinhua News Agency, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange (SAFE), said that the recent sharp depreciation of the RMB is a short-term change that has not changed the overall characteristics of two-way fluctuations and basically stable RMB exchange rate at a reasonable and balanced level. "For a very large economy like ours, the long-term trend of exchange rates is largely determined by domestic fundamentals."
In addition, Zhang Ming, deputy director of the Institute of Finance of the Chinese Academy of Social Sciences, said that although the RMB exchange rate against the US dollar may still face depreciation pressure in the short term, the probability of it falling below 7.0 within this year is still low. Even if it falls below 7.0, there is little chance that the RMB exchange rate will continue to fall sharply. In the future, the exchange rate of RMB against US dollar may show wide fluctuation pattern again in the range of 6.7 ~ 7.0.