RMB Exchange Rate Hit A New High For More Than 7 Months

Yesterday, the RMB exchange rate hit a new high of 7 months.

However, the balance of foreign exchange and sales in September was $16 billion 300 million yesterday, or that cross-border capital is still running out.

In this regard, expert analysis said that the future two-way movement of cross-border capital flows may become a new normal.

In October, the yuan appreciated by 0.32%.

Yesterday,

Spot exchange rate rose 6.12, closing at 6.1195, again hitting a 7 month high since March 7th.

Data show that in recent weeks, the RMB has been hovering around 6.12, showing a strong trend.

Since October, the RMB has appreciated by 0.32%.

Liu Dongliang, a senior analyst at China Merchants Bank's financial market, believes that the appreciation trend of the renminbi will continue, and even the short-term appreciation of the US dollar will accelerate.

Royal Bank of Scotland says it expects the renminbi to maintain an upward trend against the US dollar, estimated at 6.05 at the end of the year.

It is worth noting that although

Phase appreciation, but in September, bank sales and foreign exchange remained deficit.

Yesterday, the data released by the State Administration of foreign exchange showed that in September, the bank settled foreign exchange of 163 billion US dollars, selling foreign exchange $179 billion 300 million, and selling foreign exchange deficit by US $16 billion 300 million.

Insiders pointed out that in September, with a trade surplus of US $31 billion, foreign exchange settlement is still a deficit, or that cross-border capital flows out.

Guan Tao, director of the international balance of payments Department of the State Administration of foreign exchange, said yesterday that "the current capital outflow in our country is not a risk or a problem."

Recently, due to the two-way fluctuation of the RMB exchange rate and the intricate internal and external environment, the capital has shifted from partial inflow to partial outflow, and the pendulum effect is more obvious.

In the three quarter, the balance of our foreign exchange reserves was US $3 trillion and 890 billion, down by about US $100 billion from the end of the two quarter, after market speculation that this may mean that the central bank may start selling US dollar assets.

In this regard, tube Tao said, "the main reason for this decline is the exchange rate conversion caused by the strong exchange rate of the US dollar in the international market."

The balance change caused by the conversion is only a change in book value, not a real loss.

According to the Bank of communications, China's trade surplus tends to narrow in the coming year and even in the future. The two-way fluctuation of the RMB value has become the norm.

In addition, with the joint impact of the withdrawal of QE from the Federal Reserve, cross-border capital flows will flow and outflow alternately and fluctuate.

Guan Tao said that because of the increase of internal and external uncertainties, it may make the two-way fluctuation of cross-border capital flows become a new normal.