Chinese Capital Big Banks Continue To Sell Dollar And RMB Exchange Rate Stabilized

In October 19th, the RMB on the coast dropped by 0.11% against the US dollar (CNY), at 6.3601 yuan.

RMB turnover rose 31.93% today to $22 billion 260 million.

Foreign media quoted traders as saying that at least two big Chinese banks continued to sell the US dollar after the offshore renminbi fell offshore this morning.

As announced by China in the morning

A little worse, the offshore RMB exchange rate was under pressure, and a large number of sales came in.

Traders said that the Chinese bank obviously protected the market around 6.3650 in the afternoon.

Depress nearly 100 points to 6.3553.

A foreign exchange trader at a foreign bank said that China's big banks had been selling dollars all day.

Market participants pointed out that

Expectations have been somewhat diluted, but there is no expectation of unilateral appreciation. In the future, the RMB exchange rate will be dominated by shocks.

China's National Bureau of Statistics announced on Monday that gross domestic product (GDP) grew by 6.9% in the three quarter, the lowest growth rate in six and a half years. The Reuters survey median was 6.8%, while the annulus ratio increased by 1.8%.

Last week, the central bank released data showing that in September, the central bank's foreign exchange quota decreased by 264 billion 142 million yuan, the smallest decline in three months, indicating that the situation of China's capital outflow eased.

According to the 16 evening data, at the end of 9, foreign exchange funds of financial institutions decreased by 761 billion 300 million yuan from last month to 27 trillion and 400 billion yuan, the largest monthly decline in history.

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Wall Street has seen more than one mention of China's debt problem. In recent decades, massive borrowing and borrowing is a global problem. However, with the general decline in the growth of emerging market economies, high debt poses a greater threat.

This month's Wall Street news article mentioned that Citigroup's "world credit has reached its limit," the report points out that credit expansion has injected a lot of liquidity to the market, especially for emerging markets, including China, making them the engine of stimulating economic growth in the early stage of the financial crisis.

But the credit expansion of emerging markets has come to an end, leading to unprecedented commodity overflows and "empty city ghosts", and the world's most dangerous credit bubble, which many people believe.

The report believes that the central bank credit expansion has reached the edge of elasticity, that is to say, the total overdraft of all countries is increasing.

As a result, the new credit market in emerging markets no longer promotes economic growth, but rather pushes up asset price inflation as in the west, such as real estate and stock markets.

This month's Wall Street news article mentioned that Citigroup's "world credit has reached its limit," the report points out that credit expansion has injected a lot of liquidity to the market, especially for emerging markets, including China, making them the engine of stimulating economic growth in the early stage of the financial crisis.

But the credit expansion of emerging markets has come to an end, leading to unprecedented commodity overflows and "empty city ghosts", and the world's most dangerous credit bubble, which many people believe.

Last week, Carmen Reinhart, a professor at Harvard University, warned in the article that there may be a crisis warning in emerging markets that is difficult to monitor and measure - hidden high debt.

During the boom period of infrastructure boom, China provided financing for major mining projects such as mining and energy in other emerging market countries.

These debts are basically priced in US dollars, many of which are derived from China's policy banks, not in the statistics of the BIS and the world bank.

The debt of emerging economies is likely to be undervalued, and the capital outflow of their experience may be more serious than is generally expected.