The Renminbi Rose Slightly Against The Dollar In The Afternoon, APEC Remained Stable Before Or After The Meeting.

The renminbi rose slightly against the US dollar on Monday (October 27th) afternoon, and the middle price ended 3 days of continuous downward trend, but overall remained stable.

Traders said that the demand and supply in early morning were mainly based on foreign exchange settlement, and the turnover was relatively large.

The US dollar / RMB inquiry system was reported at 6.1153 noon and 6.1172 last Friday.

The central parity of the US dollar / RMB central bank was 6.1446, and last Friday the middle price was 6.1467.

In the overseas non deliverable Forex foreign exchange (NDF) market, the US dollar / Renminbi one year variety is newly reported at 6.2420/50, and last week's five was 6.2445.

The latest offshore dollar / RMB spot report in Hongkong was 6.1231/36, and the last trading day was 6.1232.

Traders expect the renminbi to remain stable and slightly appreciated before next week's APEC meeting.

At the beginning of the market, a large Chinese bank bought the foreign exchange market, and the US dollar / RMB also went up to about 6.1170, but then a number of big Chinese banks settled the foreign exchange, so the exchange rate returned to the 6.1150 line.

On November 5th -11, China will host the activities of the Asia Pacific Economic Cooperation (APEC) leaders conference this week in Beijing.

china merchants securities

Xie Yaxuan, head of research, believes that because of the central bank's regulation, the domestic RMB spot exchange rate is relatively strong, resulting in a significant increase in the offshore and offshore market spreads, stimulating the mainland market.

Demand for settlement in Hongkong market.

This shows that there are signs of domestic outflow in September.

China Merchants Securities also points out that arbitrage funds can be purchased in the mainland market and then settled in the Hongkong market. The average return in September is 28 times that of 7-8 months. The exchange rate of $100 million in Hongkong can be changed to 1 million 50 thousand yuan more than that in the mainland market.

In the international currency market,

On Monday, the Asian market remained stable. Previous ECB banking stress tests showed that European banks' funding gap was smaller than expected, adding help to the risk sentiment in the past week.

The weaker yen performance is also due to the rekindling of risk appetite, which has helped the US stock market rise strongly after the optimism of the big business earnings.

Related links:

(1) push the reform: speed up the marketization of interest rates and the reform of exchange rate formation mechanism.

Gradually forming the RMB exchange rate formation mechanism determined by market supply and demand.

We should reasonably control the pace and amplitude of RMB exchange rate appreciation, and constantly improve the RMB exchange rate formation mechanism in accordance with the principle of initiative, controllability and gradualism, so as to make the market supply and demand play a greater role in the formation of exchange rate.

At the same time, we should expand the fluctuation of the RMB exchange rate, ease the pressure of RMB appreciation, and push the RMB exchange rate level approaching the equilibrium level, weaken the expectation of unilateral appreciation of the RMB market and eliminate the arbitrage space of the exchange rate difference.

We should actively promote the marketization of interest rates.

Gradually forming the interest rate formation mechanism determined by market supply and demand, so that the interest rate level can truly reflect the capital supply and demand situation in the market.

We should establish a deposit insurance system and gradually liberalize the interest rate of deposits.

We should constantly improve the scientific pricing ability of the market, enhance the regulatory role of price leverage on domestic and foreign interest rates, and eliminate the arbitrage space of interest spreads.

(two) strong supervision: strengthening the authenticity examination of RMB cross-border trade and investment.

The people's Bank of China should pay attention to balance the relationship between financial innovation and risk prevention, increase research and Analysis on innovative products of RMB financing business of cross-border trade of commercial banks, do a good job in risk prevention, keep the development speed and scale of cross-border trade RMB financing products in a reasonable scope, and guide the healthy development of cross-border trade RMB financing products.

When handling cross-border business, banking institutions should strengthen their business management according to the three principles of "understanding your customers", "understanding your business" and "due diligence", strictly do the due diligence in all aspects of cross border trade and investment, strengthen the authenticity examination, strictly examine the relevant documents such as identical, customs declarations, invoices and other related documents, so as to ensure the true background.

Take precautionary measures and identify and control RMB cross border arbitrage from the source.

We must strictly guard against cross-border cross-border trade financing and carry out RMB cross-border arbitrage. The financing and repayment requirements are unified and can only be completed in a banking institution.

For example, in the re export trade, we should focus on strengthening the management of RMB income under the first and second round of trade.

When the re export trade is collected, the banking institutions must strictly examine the authenticity of the relevant documents, and make on-site verification if necessary, so as to ensure the authenticity of the re export trade.

(three) re monitoring: strengthen off-site monitoring and on-site inspection, and build an effective and scientific monitoring platform for cross border capital flow of RMB.

Using the people's Bank credit information system, the "negative list" of cross border RMB arbitrage is established.

The business entity should make a commitment to the use of funds. Once it finds no arbitrage or money laundering in the context of real trade, it will immediately enter the credit information system to increase the cost of future economic pactions and curb the occurrence of illegal arbitrage.

Based on the existing RMB cross border management information system (RCPMIS), we will upgrade and upgrade the RCPMIS system, add information inquiry module, and make separate statistics on the related information such as re export trade and trade financing capital flow, so as to fully reflect the RMB capital flow and changes in re export trade and trade financing.

We should strengthen coordination and communication with foreign exchange bureaus, establish the concept of coordination and supervision of foreign currency, establish information sharing mechanism, and enhance joint efforts in supervision.

We will establish a unified multi-level data collection, monitoring, analysis and early warning system for cross-border capital flows, and build a dynamic monitoring and analysis platform for cross-border capital flows to enhance the level of statistical monitoring and early warning of cross-border abnormal movements of RMB.

We should further improve the off-site tracking and verification mechanism for cross-border RMB movements, intensify on-site inspections, and promptly identify and handle abnormal situations such as false pactions and false financing, so as to prevent and resolve the risks and adverse effects brought by cross border arbitrage of RMB.