Yuan depreciation adds up to trade recovery

Exchange rate of the Chinese yuan against the US dollar fell to 6.26 by the end of April from 6.03 at the beginning of this year, with accumulated depreciation of about 3.7 percent, which undoubtedly contributed to the upturn of the country's trade activities in April.

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Total import and export value stood at $358.63 billion, up 0.8 percent from a year earlier, among which export value increased to $188.53 billion during the same period. The trade surplus last month grew by 1.8 percent to hit $18.45 billion.

Valuated by the US dollar, the import value in April increased by 0.8 percent year on year, showing obvious recovery compared with a decrease of 11.27 percent in March. Meanwhile, the export value grew by 0.9 percent year on year, although it dropped 6.59 percent in March.

Year-on-year export growth was partly due to the drop of base data in April 2013, as it was the last month affected by over-invoicing distortions. Import growth, on the other hand, was mainly attributable to a full-front slump of commodity prices last month.

Positive trade picture was boosted by the warming global demand last month, indicating an accelerating economic recovery worldwide, especially in the developed European and American countries.

That being said, I think trade activities will continue to rebound in months to come, with the underpinning of China's stable trade policy.

The author is a certified financial planner and independent commentator. The views do not necessarily reflect those of China Daily.

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