RMB exchange rate depreciates sharply since last week after incomprehensible appreciation for a year and so. China's State Administration of Foreign Exchange emphasized on "two-way volatility" while interpreting RMB depreciation. ANBOUND think tank scholars believe that RMB depreciation is well planned and executed by the central bank in order to open a window for reform. Under the guidance of the central bank, RMB exchange rate will gradually achieve balanced interval and create favorable condition for deepening reform. We believe that the new round of exchange rate reform will be launched soon after the National People’s Congress and Political Consultative Conference.