Taiwan Will Promote Offshore Dollar To RMB Exchange Rate Fixing Mechanism

Taiwan Monetary Authority announced on the 28 day that it will start the "offshore dollar to RMB exchange rate fixing and price fixing pricing mechanism" from September 1st to promote the sound development of the offshore RMB market in Taiwan.

It is said that since the formal establishment of RMB business by the designated foreign exchange bank in February 6, 2013, the RMB pool in Taiwan has gradually expanded to set up an index for the pricing and evaluation of the RMB exchange rate and interest rate related commodities, so as to expand the RMB business. In response to the suggestion of the Taiwan Commercial Bank Association, the decision to promote Taiwan has been made.

RMB fixed

And the interest rate quoted price mechanism.

It is reported that the Taipei foreign exchange market development foundation will serve as the management body of this mechanism, responsible for related business and supervision and management, and entrust Thomson Reuters to act as the agency for calculating the interest rate quoted price.

The Taipei foreign exchange market development foundation will officially launch the mechanism in September 1st. The relevant banks in Taiwan will use the mechanism when they handle Renminbi related business in the future.

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In the overseas non deliverable forward foreign exchange (NDF) market, the US dollar / Renminbi one year variety rose to 6.2240 on the 28 day, indicating that investors expect the RMB intermediate price to depreciate by about 1.3% a year later.

In the offshore renminbi market in Hongkong, USD / RMB traded at 6.1490 front-line, also higher than 6.1467 on Wednesday.

Foreign exchange traders said that since the beginning of June, the appreciation stage of the RMB has been relatively large. Further appreciation or strong fundamental data is needed to follow up. However, some recent economic and financial data have been repeated. The market has not yet reached a consensus on the bottom of the economy, and the Fed's interest rate increase is expected to increase.

In this context, participants became cautious and chose to watch more and less, resulting in narrow fluctuations in the exchange rate and light trading in the market.

In addition, the RMB exchange rate in offshore markets has been lower than on shore prices, and the tendency to continue to see more is not obvious.

On the whole, the RMB exchange rate has changed for some time.