Asian Currencies Are Not Affected By Falling Renminbi.

< p > yesterday, < a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB exchange rate < /a > not rising or falling, the onshore market was 1 yuan to 6.14 yuan, and offshore market was 1 yuan to 6.12 yuan.

The RMB exchange rate has fallen by nearly 1.3% in the past 10 trading days, the biggest decline since the renminbi was no longer pegged to the US dollar in 2005.

< /p >

< p > compared with other emerging markets, this change is still small.

But for the renminbi, it is both big and unexpected.

< /p >

< p > it raises a series of questions about the health status of < a href= "//www.sjfzxm.com/news/index_cj.asp" > China's economy < /a > and the extent of the authorities' control over the market.

If the yuan goes further down, companies and investors may also suffer huge losses on complex hedging products.

< /p >

< p > but other Asian countries seem indifferent to the decline of the renminbi.

In the past 5 days, only 3 currencies in the Asia Pacific region have gone down (Australian dollar, Philippines peso and Singapore dollar), and they all have domestic reasons.

< /p >

< p > "if you look at the exchange rate situation in Asia, you will find that these currencies are actually very good," said Samir Gore Sameer, head of Asian interest and foreign exchange research at Deutsche Bank.

He added that the magnitude of the Yuan's change is not large enough to produce significant linkage effects on other countries.

< /p >

< p > analysts say the market reaction is flat because the parties believe that Beijing can still control the exchange rate and has stepped up its efforts to stop speculation.

Some economists say China may also allow the yuan to fall as a way to increase the liquidity of the renminbi in the domestic economy.

< /p >

< p > although the Central Bank of China has said that behind the exchange rate changes is "market forces" at work, most exchange rate observers say the Central Bank of China still has a dominant position in the market, and recently it has led the renminbi to go down in order to deterrent "hot money".

< /p >

< p > most investment banks have not changed their medium-term prediction of the appreciation of the renminbi, saying that the fundamentals of the economy still support the Yuan's rise.

< /p >

< p > "this shows what they are trying to plan," said Paul Mackel, director of Asian foreign exchange research at HSBC, HSBC. "If the purpose of the lower renminbi is to support the economy, its impact on the region will be much larger."

< /p >

When p < < a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB < /a > low, it coincides with China's release of weak economic data.

The official purchasing managers index (PMI) fell to a 8 month low, while a survey showed that manufacturing is shrinking.

Although the lending data of banks are strong, the real estate market in some places seems to be turning.

< /p >

"P", which raises doubts about the strength of China's economy, which has dragged down the Australian dollar, which has made the Australian dollar a common substitute for China's economic growth.

< /p >

< p > although the regional impact has so far been negligible, some people say that if people's views on why the renminbi is low, they may respond to China's closest trade rivals.

If the fall in the renminbi is seen as an attempt to promote trade, other currencies will probably respond.

< /p >

< p > "at the moment, all sides clearly believe that the renminbi's low expression is the desire of the Central Bank of China to introduce more two-way volatility."

Gore, Deutsche Bank, said, "if the currency devaluation policy is in the end, it will obviously affect the policies of neighbouring countries and how they view their competitiveness."

< /p >