On February 28, wind data showed that the onshore RMB broke 6.31 against the US dollar, rising to 6.3052, a new high since April 2018. As of 18:00, the onshore RMB was reported at 6.3074 against the US dollar, an increase of 1.03% during the year; The offshore RMB exchange rate against the US dollar hit 6.3089 as high as 6.3275, up 0.86% during the year. Wang Youxin, a senior researcher at the Bank of China Research Institute, said in an interview with the reporter of Securities Daily that the recent continuous rise of the RMB exchange rate and breaking through multiple barriers are mainly driven by risk aversion. At present, the international financial market fluctuates sharply, the global economic development faces more challenges, the hedging function of traditional hedging currencies such as the euro is weakened, and the market begins to look for new hedging assets. Thanks to China's stable social development environment, prudent fiscal and monetary policies and high return on assets, RMB assets are increasingly favored by international investors, and the exchange rate is gradually rising. "The recent appreciation of RMB is mainly due to the support of foreign trade fundamentals. At present, China's foreign trade situation is expected to continue to improve. In this case, there is an obvious appreciation trend of RMB. At the same time, with the improvement of economic and trade situation, the actual demand for foreign exchange may increase." Tao Jin, deputy director of the macro Department of Suning Financial Research Institute, told the reporter of Securities Daily. However, the rapid rise of RMB exchange rate in the short term has both positive and negative effects. Wang Youxin said that RMB appreciation has a positive impact on attracting cross-border capital inflows and reducing the import costs of enterprises. However, there is a negative impact on the export industries such as garment processing, textile, electronic equipment and household appliances. Tao Jin believes that the appreciation of RMB is a reflection of China's economic and trade fundamentals. At present, China's foreign trade advantage is expected to continue to be maintained, and the competitiveness of commodities is also strengthening. Therefore, the price elasticity of exports is relatively small, and the impact of RMB appreciation on the foreign trade industry is relatively small. Short term appreciation is expected to support financial and other industries. For the factors affecting the RMB exchange rate in the later stage, Tao Jin believes that in the case of strong geopolitical uncertainty, the RMB may still have room for appreciation due to factors such as risk avoidance and short-term improvement of foreign trade situation. However, considering the gradual improvement of the global epidemic and the increase of interest rates by European and American central banks, China's supply advantage may be weakened. In the long run, China's economic fundamentals are still good, the long-term fundamental advantages will become the leading factor in the trend of RMB, and the RMB exchange rate will continue to fluctuate in both directions. (Xinhua News Agency)