The news of China US talks makes the expectation of RMB appreciation increase again in the near future

Introduction: Singapore news on May 6: investors again bet on the recent appreciation of the RMB on Friday, as it is reported that the people's Bank of China and officials of the US Treasury Department will hold talks next week, To discuss the exchange rate mechanism One month and three-month NDF of RMB has risen again to the record high reached earlier this week, "The market's speculation about the appreciation of the RMB is likely to continue into next week The NDF price reflects that the RMB exchange rate is likely to adjust soon," she said ABN AMRO expects the revaluation of the RMB to happen in the fourth quarter Since the Asian financial crisis in 1997-1998, China has adopted the exchange rate policy of pegging the RMB to the US dollar The United States and Europe have frequently put pressure on China, Urging it to loosen its control over the exchange rate and allow the yuan to appreciate, so that exporters from other countries can compete under more equal conditions Expectations for the appreciation of the yuan were set back on Thursday as China's finance minister, Jin Renqing, said that in the current market hype against the yuan, It's hard to push forward the reform of the exchange rate But investors keep up with the news that Chinese and American officials will hold talks next week and speculate that China is ready to adjust the exchange rate of the RMB The three-month NDF period reflects the appreciation of the RMB by about 2.5% on Friday, compared with 2% yesterday, said Condon, head of Asia financial market analysis, Singapore, a Dutch commercial bank, "We have changed our previous forecast for the appreciation of the RMB, and now we expect the appreciation of the RMB to be about 10%.", China's access to these markets will be limited * China US talks * * a U.S Treasury official said Thursday that he will hold regular talks with officials of the people's Bank of China next Monday to discuss economic and financial issues, including exchange rates In addition, a Chinese investment adviser said, People's Bank of China officials led by the head of the open market operation Office of the people's Bank of China are visiting bankers and investors in New York and discussing the RMB exchange rate reform plan, "This shows that the RMB exchange rate adjustment is imminent." he said that the delegation has met with bankers from Lehman Brothers, Morgan Stanley and Bear Stearns A Reuters survey of 44 foreign exchange analysts this week showed that China will take action on the RMB exchange rate in the second half of this year, and the appreciation of the RMB will be about 3% by the end of 2005 They thought, By the end of June, China's chances of adjusting its exchange rate mechanism were only 22.5%