the rmb exchange rate will most likely fluctuate within a reasonable range
the year 2021 witnessed the steady recovery of china's economy and the smooth running of the financial market. the renminbi exchange rate against the us dollar fluctuated within a reasonable range，going through three stages of falling，rising，and fluctuating. in 2022，the renminbi exchange rate will face depreciation pressure considering the increasing downward pressure on china's economy，the likely slowdown in the external demand growth，and the normalization of the federal reserve(fed)'s monetary policy. however，it will still likely fluctuate within a reasonable range thanks to the resilience of china’s economy and sufficient policy control tools of the government.
review of the renminbi exchange rate trend in 2021
in 2021，the renminbi exchange rate against the us dollar generally remained stable and fluctuated within a reasonable range. as of november 16，the central parity rate of the renminbi against the us dollar was 6.3924，an appreciation of about 1.34% from the beginning of the year (to be updated). the fluctuation of the renminbi exchange rate showed an atypical "m"-shaped trend throughout the year，including three stages of falling，rising，and oscillating (see figure 1).
