A Slight Decline In The Afternoon Of The Renminbi, The Impact Of Inflation Is Limited.

China's RMB against the US dollar on Wednesday (October 15th) declined with the middle price, continuing a narrow concussion, and the paction was also down compared with the same period yesterday.

Traders showed that the inflation figures released earlier had limited impact on the spot, and the short-term impact of customer discounts was dominant.

Traders said the overnight dollar strengthened the central parity of the yuan.

The intra day volatility is still relatively narrow, and there is no apparent increase in passenger traffic to see if there will be more purchases in the afternoon.

A foreign investment bank executive said, "because at the beginning of the month and the middle of the month, there was not much outflow.

Although it is the high point of the renminbi in recent months, it has not gone down, and there will still be some oil purchase orders in the vicinity of 6.1230 to support the market.

He also pointed out that the newly released inflation figures in China have limited impact on the RMB exchange rate, but on the other hand, they have greater impact on interest rates.

Through Renminbi

It can reduce inflationary pressure, but the newly released CPI data is relatively low, so the necessity of using exchange rate instruments is not large.

Another stock trader also pointed out that

Generally speaking, there will be no direct impact on the foreign exchange market. In the short term, it will depend on the overall supply and demand of customers' foreign exchange and foreign exchange.

China's consumer price index (CPI) rose 56 month lows in September over the same period last year.

The pressure of excess capacity in the industrial sector has increased the producer price index (PPI) of the industrial sector over the same period.

Low inflation is conducive to maintaining a loose monetary policy tone.

13:39 Beijing time.

It was reported at 6.1259 yuan on the spot and 6.1247 yuan on the previous day.

Today, the central parity of RMB against the US dollar is 6.1455 yuan, and the middle price of the previous day is 6.1408 yuan.

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The British government issued a sovereign offshore RMB bond on Tuesday (October 15th), attracting about 5 billion 800 million yuan of investment demand from 85 accounts, far exceeding the planned circulation of RMB 3 billion yuan. It has become the largest regulated RMB bond paction issued outside China.

Highlights the growing global attractiveness of the renminbi.

George Osborne, the chancellor of the exchequer, said in a statement that the British government issued the sovereign class Renminbi bonds, the first such paction carried out in western countries. The paction has been a great success and will bring monetary value to taxpayers.

The British government hopes London will become an offshore renminbi trading center.

The proceeds of the paction will be used to finance foreign exchange reserves in the UK, and the government holds foreign exchange reserves through its Exchange Equalisation Account, including financial assets denominated in foreign currencies, gold and the "special drawing rights" of the International Monetary Fund (IMT).

The UK Treasury added that trading revenue is expected to be used to reinvest the offshore renminbi market.

Although the British government is the first to issue sovereign offshore bonds in this paction, the main underwriter of the paction can still use many reference points to determine the pricing level.

One of the comparable criteria is the world bank's private sector sector International Finance Corporation (IFC), which has issued two offshore RMB bonds. Its maturity dates are in September 2019 and January 2017, respectively, with a yield of 3% and 2.39% respectively.

The Underwriters also referred to the two bonds issued by the Chinese government. Their maturities were in June 2017 and June 2018 respectively, yielding 2.74% and 2.85% respectively.

The UK government's final pricing for the paction is 2.70%, equivalent to 2.75% (up to 5 basis points), the lower limit of the final guidance interval, compared with the previous initial guidance interval of 2.90%.

In addition, the deal also represents the second time the British government issued bonds in the niche bond market in the past five months, after which it issued a five year Islamic bond (sukuk) of 200 million pounds (US $320 million) in June.