The central parity of the RMB against the US dollar returned to the 6.8 range

The central parity of the renminbi against the US dollar rose rapidly for two consecutive trading days. According to data from the China Foreign Exchange Trading Center, the central parity of the RMB on the 5th was sharply raised by 395 points to 6.8976, the highest since October 8, the biggest increase since August 28. However, the spot closing price of the RMB against the US dollar fell 368 points from the previous closing price of the previous day to 6.9265.

According to industry insiders, the rise of the renminbi, in addition to the dollar’s decline, is more important, the market is expected to improve. On the one hand, there have been frequent measures to stabilize the foreign exchange market in the near term, and the market is expected to increase the counter-cyclical adjustment of foreign exchange; on the other hand, with the recent introduction of a series of favorable policies, especially the policy of supporting private enterprises, It has shaken the market’s expectations for economic development.

Looking ahead, market participants pointed out that in the short-term, the narrowing of the spread between China and the United States still has some pressure on the RMB exchange rate, and the RMB is likely to show an ups and downs with the fluctuation of the US dollar. Liu Yu, an analyst at Guosheng, pointed out that by appropriately increasing the exchange rate volatility and achieving two-way exchange rate fluctuations within a certain range, it can effectively prevent the formation of depreciation expectations.

Wang Chunying, spokesman of the State Administration of Foreign Exchange, said recently that in recent years, the RMB exchange rate formation mechanism has been continuously improved, and the two-way floating flexibility of the RMB exchange rate has increased. At the same time, market players are more rational, exchange rate expectations tend to be diversified, foreign-related transactions are rational and orderly, exchange rate risk management awareness is enhanced, and the adaptability to two-way exchange rate fluctuations is significantly improved.

Post time: Nov-09-2018
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