RMB To Us Dollar Intermediate Price Stability

In the international currency market, the US dollar fell slightly on Thursday. This is mainly due to more signs that the first quarter of the US economy has slowed down significantly and may delay the decision of the US Federal Reserve (FED) to start raising interest rates.

After a series of 3 trading days, the RMB was basically stable against the US dollar on Thursday (April 2nd), while the rise in the RMB's central parity ended with the 4 consecutive trading days down.

The inquiry system is 6.1977 noon and 6.1980 on Wednesday.

The central parity of US dollar / RMB central bank was 6.1396, and Wednesday's middle price was 6.1434.

In the non deliverable forward foreign exchange (NDF) market, the US dollar / Renminbi variety is up to 6.3190/6.3240 at the latest, and 6.3245 at the end of Wednesday.

The latest offshore dollar / RMB spot report in Hongkong was 6.2035/6.2041, and the last trading day was 6.2036.

Traders pointed out that because of the lack of guidance in the market, big businesses and customers are waiting to see that the short-term exchange rate or a narrow range near 6.2000 yuan.

"Recently, the market has been driven more by the customer disk, and the guiding role of the intermediate price has decreased. In addition, the market is also hard to find the central bank trail, and the RMB exchange rate may maintain an interval shock."

Other traders said that there was no specific directional guideline for the middle price, and the market participants were in the same position.

Meanwhile,

Offshore RMB also stopped after four successive rises, and the fluctuation narrowed correspondingly.

Beijing time 13:15, the US dollar / Renminbi reported 6.1975.

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Speeding up the realization of RMB capital account liberalization is bound to be the highlight of the 2015 financial reform.

Until now, there is still controversy about the timing of opening up.

During the 2015 annual meeting of the Boao forum for Asia, the timing of the opening of the RMB capital account and other issues, Wu Xiaoling, vice president of the finance and Economic Commission of Wudaokou Tsinghua University and the vice chairman of the NPC Financial and Economic Commission, received an exclusive interview with the first financial daily.

To achieve the maturity of the convertibility of capital account, Wu Xiaoling said, in fact, from the 7 major categories and 40 sub capital items defined by the International Monetary Fund (IMF), in addition to 4 items, China has realized full or partial convertibility.

One of the four most important points is to borrow foreign debts and a non resident to invest in China, including creditor's rights, stocks, derivatives, etc., as well as domestic residents to invest abroad, that is, the investment of financial assets.

Wu Xiaoling pointed out that at present, the domestic management of foreign debts basically takes the way of controlling each borrower's balance sheet, and has a certain degree of liberalization.

Overseas residents investing in the territory already have QFII (qualified foreign institutional investors), and RQFII (RMB qualified foreign investors).

Domestic residents investing abroad also have QDII (qualified domestic institutional investors).

The direct investment of domestic and overseas residents has been linked by Shanghai and Hong Kong.

"In addition, since 2005, residents have 50 thousand dollars per year for free purchase and payment of foreign exchange. What is the concept of 50 thousand dollars? According to the exchange rate of RMB against the US dollar at that time, it is around 8.2 yuan, that is to say, 400 thousand yuan can be traded arbitrarily. For ordinary people, it is very convenient to use remittance.

It can be said that we have had the amount of accumulation, let go, I think it is not a problem, do not have to worry about the immature conditions.

Wu Xiaoling said.

The market once questioned that once the convertible capital account is opened, there will be a big risk of capital coming and going. How can we prevent and control it?

Wu Xiaoling said, first of all, the current implementation of the free trade pilot area is to manage the accounts separately and monitor the free trade account (FTA).

The State Administration of foreign exchange has also established an account monitoring system over the years.

The risk of capital account liberalization mainly comes from the uncertainty of capital flow. If there is an account monitoring system, we can guard against the flow of capital.

Second, all convertibility is not totally unregulated. If there are some economic behaviors that are not allowed, then there will be some control over capital and investment. This is also possible; third, it is precisely because of the realization of convertibility that the fluctuation of RMB prices can reflect supply and demand more. When the price distortion is reduced, the risk of speculation will be reduced. Fourth, when the economy has great problems, it can also be temporarily controlled.

So overall, there is not much risk.

Finally, Wu Xiaoling said: "the risk of convertibility under capital terms is the key to whether China's economy is at risk. Under the current international economic situation, although China's economic development is entering a new normal and developing at medium and high speed, we still look good globally, so there is no big problem."