Insight on RMB appreciation against US dollar

The yuan's midpoint against the U.S. dollar hit fresh record-highs a total of nine times in April, increasing by 770-percentage points in a single month. Since the start of 2013, the yuan has appreciated by one percent against the greenback.

The currency's rise against other currencies has increased at an even faster pace. Driven by the weakening of some major currencies, such as the yen and pound, the yuan's value has been pushed up over the past few months. For example, the yuan has appreciated by nearly 20 percent against the yen since last July.

Analysts say the easing policies taken by global central banks has driven up the value of the yuan. This has led to lower interest and exchange rates than other countries, attracting more hot money inflows into China. According to the PBOC, China's outstanding foreign exchange funds hit a record high to 1.2 trillion yuan, or nearly 195 billion U.S. dollars, in the first quarter, indicating the influx of hot money is accelerating.