RMB Exchange Rate Two-Way Floating Elasticity Of &Nbsp; Deep Level Exchange Reform Or Opening.

"The lowest in the year" and "the highest level of exchange reform" are only 6 trading days.

Compared with the previous trading day, a sharp rise of 113 basis points, on Friday, March 23rd, the central parity of RMB rose to 6.29 for the first time, reaching 6.2891.

However, the new high middle price is only 6 trading days compared with the 6.3359 of the new low in March 15th.

In such a short period of time, the rise and fall of the central parity price of the renminbi can be described as "great and magnificent". The fluctuation range is so huge that the central parity of RMB has not been seen before.

Elasticity and Reform

This is the most significant period in the elasticity of RMB's middle price since the reform.

From a slightly larger perspective, from the end of 2011 to the end of March 2012, to nearly 5 months in March 2012, the central parity of RMB fluctuated. The median price in March 14th was 6.3328, and the median price in March 15th was 6.3359, which was the same as the middle price at the end of 2011 and early 2011 in 2011. The intermediate price of the RMB went back to four months ago, which has not happened before. This has also changed the unilateral appreciation trend since the RMB exchange rate reform (except the special period during the financial crisis).

Shortening the time to observe, since March 2012, the fluctuation of the central parity of RMB has been more and more important.

Chinese officials have repeatedly issued a sound balance of the central parity of RMB.

Zhou Xiaochuan, governor of the central bank, wrote in the latest issue of China finance that we should improve the RMB exchange rate formation mechanism.

The vice president of the central bank and Yi Gang, director of the State Administration of foreign exchange, also pointed out that the two-way anticipation and two-way fluctuation of the RMB exchange rate have been formed since the fourth quarter of last year.

He said that we should constantly improve the formation mechanism of RMB exchange rate and enhance the flexibility of RMB exchange rate floating in two directions.

Chen Deming, Secretary of the Ministry of Commerce, said at the beginning of this month that our RMB exchange rate has been in a reasonable interval, so that it should maintain a stable level while increasing its elasticity.

A foreign exchange market trader of a Chinese bank said that the market seemed to be affected by the official "equilibrium price", and the fluctuation was stronger than before.

So-called

A central bank correspondent told reporters that, like the end of the year, the RMB's spot trading in the spot market approached the lower limit of intra day trading, which seemed to her not surprising. The exchange rate of the renminbi was expected to exist at the same time as the rise and fall of the expectation.

Anticipation of change

With the increase of RMB exchange rate flexibility, a deeper exchange rate reform is expected to open in the foreseeable future.

But the judgement of the trend of RMB exchange rate is no longer as easy as before, and the trading in foreign exchange market has become more complicated in operation.

At the beginning of this month, when the Yuan went back, the judgment of "whether the RMB appreciation process was over" was answered by Zhou Xiaochuan.

He thought it would take a longer period to observe changes in exchange rate prices.

A few days ago,

Last week, after a substantial weakening in the central parity of the yuan last week, the yuan hit the biggest single day increase this year on the spot market on Thursday.

Early Thursday, the central parity of RMB was "unexpectedly" strong, opening at 6.3004.

However, in the early morning, the RMB weakened, and the US dollar rose to 6.3200, but after the afternoon, the RMB suddenly strengthened. At last, the US dollar / RMB fell below 6.3000, which is the first time it has been lowered below 6.3000 since March.

On Friday, the central parity of RMB also hit a new high since the reform.

Xie Dongming, an economist with overseas Chinese Bank of Singapore, said: "we believe that based on the recent overlook of China's voice in overseas markets, appropriately guiding the strengthening of the renminbi can play a stabilizing role in market confidence."

The RMB exchange rate is currently in the process of shock, appreciation or depreciation in a longer period of time. This problem has not been able to be answered simply in the more complicated economic situation in 2012.