Michael Konaris: Next Year, RMB Will Remain Unchanged.

Recently, during the Shanghai (financial) online trade fair, reporters interviewed Michael Konaris, CEO of Easy-forex, an online trading group.

Reporter: with the acceleration of the internationalization of RMB, many well-known foreign exchange brokers have introduced offshore RMB trading varieties. In June last year, Yi Xin announced the launch of offshore renminbi trading against the euro, Australian dollar, Japanese yen and US dollar. Users can exchange offshore renminbi for a variety of currencies without having to open an VIP account. Why do we need to introduce offshore renminbi transactions?

Michael Konaris: Yi Xin found that Chinese investors are very interested in RMB related products in the communication with Chinese investors. A series of reforms made by the Chinese government also indicate that the Chinese government hopes that the domestic financial market will be more free and open. For example, recently, the people's Bank of China announced that the floating exchange rate of RMB against the US dollar will be expanded to 2% from the previous 1%. With the expansion of the RMB floating range and the establishment of offshore RMB center, the liquidity of RMB will be better and better. Only if there is liquidity, will it further promote the attention of offshore RMB products. Yi Xin is the first online foreign exchange broker to launch offshore renminbi in the foreign exchange market. In the future, we hope to release offshore RMB option products when conditions are ripe. Reporter: what are your expectations of RMB internationalization as a foreign exchange broker? What do you think of the ongoing financial reform in Shanghai free trade area?

Michael Konaris: RMB Internationalization It is a very complex project, which involves the opening of the financial market, the reform of the RMB exchange rate and so on. As a foreign exchange broker, we hope to see the internationalization of the RMB as soon as possible, because this represents that Yi believe there will be more opportunities to provide the Chinese investors with their favorite financial products. We have been concerned about the relevant information of the Shanghai Free Trade Zone, but at present, many of the relevant rules of the Shanghai free trade zone have not yet been released. At this stage, it is difficult to judge the effect of the Shanghai free trade zone policy. However, we note that the Shanghai free trade area may allow foreign investors to participate more widely in the financial products trading and investment in China's financial market, which means that foreign investors have more opportunities to participate in the Chinese market, which is also conducive to Shanghai's construction as an international financial center.

Reporter: with the advance of RMB exchange rate reform, what is your view on the future exchange rate trend of RMB? Is there any room for appreciation in the future?

Michael Konaris: 10 years ago, the exchange rate of RMB against the US dollar was fixed. exchange rate From 2005 onwards, the renminbi began to appreciate gradually against the US dollar. This has led many investors to form the impression that the renminbi will continue to appreciate. But recently, when the floating rate of RMB against the US dollar reached 2%, different voices began to appear. Even analysts recognized that the renminbi was highly overvalued. As the RMB exchange rate rose all the way, many speculators in the international market began to borrow RMB from the US dollar and built a large warehouse. Therefore, the Central Bank of China chose to expand the floating area of RMB in a timely manner, so that the trend of RMB appreciation would not be obvious. Recently, the RMB began to depreciate and the situation reversed. This is a warning to some speculators.

In the near future, the trend of RMB devaluation may stop and turn into appreciation. But next year's situation is hard to predict. There are two main factors: first, China's economy is developing, exports are expanding, and the international market still needs Chinese products. This represents the demand for RMB in the international market. Two, with the development of China's financial market, more and more Chinese investors will participate in the international market, and sell RMB to buy dollars and pounds. Under such circumstances, there is pressure on the appreciation of the renminbi. Therefore, considering the two factors, it is difficult to predict the trend of RMB exchange rate next year.

Reporter: how do investors conduct risk control in online financial derivatives trading? How should investors choose online trading platform?

　　 Michael Konaris First of all, investors should understand that any investment has risks. If we want to reduce risks, we must first understand the financial products and financial markets that we invest in, so we must learn the relevant knowledge. Secondly, we should assess our risk tolerance and not invest in family support and borrowed money. Financial derivatives are leveraged transactions, which means investors have a stop point. No matter what mature traders, don't forget to set up a stop loss point. The choice of online trading platform should take into account the following factors: the length of time spent by the broker in the industry, the professionalism of the management team, whether it is subject to the corresponding regulation, whether the transaction is transparent and standard, and whether the service is in place in time.

Reporter: with the development of the global foreign exchange market and the continuous advance of China's financial reform, what are the future plans of Yi Xin's business expansion in the Chinese market?

Michael Konaris: Yi Xin started from ten years ago and found that Chinese investors are trading on the platform. With the increasing number of Chinese investors, the Chinese market has become the focus of Yi Xin group's focus on the market. At present, the sales team and trading room for Chinese customers have been set up at Headquarters. In the future, it will further strengthen the service to Chinese customers and provide more products that Chinese customers like, such as offshore RMB products. At present, Yi Xin registered in Guangzhou precious metal trading center a valuable Metal Exchange Corp, blue ocean GUI Metal Exchange Corp, which provides services for customers who participate in precious metal trading in China, hoping to further understand and enter the Chinese financial market.