On the first anniversary of the reform of RMB exchange rate formation mechanism, the central parity of RMB against the US dollar reached a new high of 7.9897 on February 2, 20071day, with a cumulative appreciation of about 3.5% compared with that before the exchange rate reform. This is also the highest point of RMB exchange rate since the unification of China exchange rate 1994.

In the first half of 2007, China's economic growth was 10.9%, its trade surplus reached a record of $61400 million, and its foreign exchange reserves increased by12.2 billion. These eye-catching data released recently put pressure on the further appreciation of the RMB.

On July 2, 2006, China unexpectedly announced the implementation of a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies. Over the past year, the RMB exchange rate has generally maintained a two-way fluctuation appreciation trend.

With the introduction of over-the-counter trading and market maker system in early 2007, the floating flexibility of RMB exchange rate has been significantly enhanced, and in May 15 exceeded 8 for the first time. Since then, the central parity of RMB exchange rate has been below 8 yuan for 2 1 trading day. Market analysts believe that the RMB exchange rate has entered the "7 era".