[Elite Forum]Will the RMB/USD exchange rate fall to 1:20? | Chinese Economy | The Epoch Times

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Title: Speculation Abounds as Experts Weigh in on the Potential Depreciation of the RMB

China’s economic woes continue to raise concerns as experts weigh in on the potential significant depreciation of the Renminbi (RMB) in the coming year. With the official GDP growth rate being questioned and analysts predicting further decline, concerns about the stability of the RMB exchange rate against the US dollar are on the rise.

The discussion in the “Elite Forum,” highlighted by Taiwanese macroeconomist Wu Jialong and “The Epoch Times” editor-in-chief Guo Jun, delved into the calculation of the RMB/USD exchange rate and the impact of China’s foreign exchange controls on the reality of the exchange rate. While the theoretical evaluation of purchasing power indicated a possible depreciation of the RMB, the practical application of this theory in light of China’s stringent foreign exchange controls raised questions about the accuracy of the exchange rate.

Historical events such as the 50% depreciation of the RMB in 1994 and its subsequent impact on Southeast Asia’s financial crisis were also highlighted, raising concerns about the potential implications of a significant RMB depreciation in the present day. Political and social factors were also brought into the conversation, with the stability of China’s economic structure in the face of major fluctuations being called into question.

The potential impact of a significant RMB depreciation on international economic activities was also a cause for concern, with the discussion touching on how the Central Bank of China might balance the risks in light of depreciation expectations and capital flight.

The conversation surrounding the RMB’s potential depreciation underscored the complexities of China’s economic and political environment, with experts acknowledging that economic issues are intricately linked to broader political and social structures.

The “Elite Forum,” a high-end TV program jointly launched by NTDTV and The Epoch Times, aims to provide viewers with a comprehensive understanding of critical global trends through the insight and analysis of renowned experts. The program will continue to delve into the pressing issues of the day, shedding light on the realities of the ever-evolving global landscape.

As the speculation continues, the uncertainties surrounding the stability of the RMB exchange rate raise concerns not only for China’s economy but also for its broader political and social structures. In the midst of these discussions, the global community awaits to see how these factors will unfold in the coming year.