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RMB 1 Against The US Dollar Increased By 31 Basis Points.

2011/7/2 9:25:00 35

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In July 1st, the central parity of RMB against the US dollar was 6.4685, rising 31 basis points compared with the previous trading day (6.4716), rising fourth times in a row, and breaking 6.47 again.

Spot foreign exchange, US dollar

RMB

Early morning showed a low altitude.

Overnight, the international exchange market was relieved after Greece avoided short-term default, and the European Central Bank's interest rate hike was expected to push the euro to maintain its upward trend, while the US dollar continued its weakness earlier, thus promoting the high price of RMB today.

In the third quarter economic outlook report issued by Bank of China today, it is likely that China will soon increase the floating range of RMB exchange rate and push forward the reform of RMB exchange rate formation mechanism.

The central bank is now allowing the RMB to fluctuate within 0.5% of the middle price per day.

Cao Yuanzheng, chief economist of Bank of China, said that the current floating rate of exchange rate is too narrow, and the upper and lower 1% are normal levels.

Chen Sijin, a senior investment consultant in Wall Street, said that the moderate depreciation of the renminbi is more advantageous than the disadvantages.

As the RMB exchange rate rises against the US dollar, attracting a lot of hot money into China to find opportunities for arbitrage, the result of excess liquidity has brought about overheated investment, rising house prices and the rise of resource prices, which has spread to all sectors of society, and has finally formed a severe situation of inflation, which has great damage to China's economy and undermines the fundamental interests of the broad masses of the people.

Therefore, Li Keqiang, vice premier of the State Council, made clear that the priority of China's economy is to resist inflation and stabilize prices.

The moderate depreciation of the renminbi can play an effective role.

Second, the damage to China's export industry is also enormous.

Because of China

Export

Generally, it is labor intensive, and the profit is not high. In recent years, the appreciation of the RMB has led to the increase in the cost of the export industry, and the profit has been further thinned, which has made the export products lose the international competitiveness. Many enterprises have been on the brink of bankruptcy.

According to the relevant models, China will reduce its export volume by 10%, especially for agricultural products, electronic products and household ornaments, with an appreciation of RMB 1%.

Of course, China's export industry has been "pushed" to the critical moment of pformation. It will shift from labor-intensive industries to technology service industries, and even high-tech service industries.

But this pformation will not be completed overnight. The moderate depreciation of the renminbi will win time, so as not to lose the ambition and die first.

Data from the China Foreign Exchange Trading Center show that the yuan has broken 6.6 or 6.5 two points in the past six months, and the renminbi appreciated 2.33% in the first half of the year.

For the RMB spot exchange rate representing market demand, as of yesterday's closing, the US dollar inquiry system for RMB was closed at 6.4638, up 4 points from the previous trading day, rising by more than 1.9% in the first half of the year.

The slight appreciation of the renminbi is basically consistent with the market expectations.

Market participants believe that considering

Inflation control

In the second half of this year, the RMB will continue to appreciate slightly against the US dollar. It is estimated that this year's appreciation will range from 4% to 6%. At the end of the year, the exchange rate of RMB against the US dollar may be 6.2.

From the "two exchange reform", the renminbi has appreciated by about 5.6% in the past year.

The people's Bank of China authorized the China foreign exchange trading center to announce that in July 1, 2011, the middle price of the exchange rate between the US dollar and other trading currencies in the inter-bank foreign exchange market was RMB 1 yuan to RMB 6.4685 yuan, 1 euro to RMB 9.3644 yuan, 100 yen to RMB 8.0056 yuan, 1 Hong Kong dollar to RMB 0.83105 yuan, 1 pounds to RMB 10.3625 yuan, 1 yuan to ringgit ringgit, and RMB to ruble ruble.