The RMB real effective exchange rate depreciated for a third straight month in May. According to the latest statistics released by the Bank for International Settlement (BIS) on June 16, the RMB real effective exchange rate index came to 119.46 in May, down 2.49 percent month on month. By the end of May, the RMB real effective exchange rate had depreciated 1.45 percent compared with the beginning of this year.
In May, the RMB registered an overall depreciation against the major world currencies. By the end of May, the RMB currency had declined in value by 0.11 percent, 5.13 percent, 2.89 percent, 0.08 percent and 7.92 percent against the US dollar, euro, Japanese yen, Hong Kong dollar and pound sterling respectively.
Analysts have commented that, while the RMB-US dollar exchange rate has recently seen slight fluctuations, it has basically maintained stable movement. On account of the economic stabilization and the stimulation of exports, a sharp appreciation of the RMB is unlikely within this year.
In May, the RMB nominal effective exchange rate index reached 117.59 down 2.69 percent over the previous month.