Exchange Market Point: RMB Appreciation On Shore 300 Points

On the afternoon of October 30th, the RMB rose strongly against the US dollar after opening today, rising by more than 300 points to 6.3251, or 0.5%.

The offshore renminbi appreciated by more than 200 points, about 0.356%, and the offshore shore exchange rate narrowed.

The central bank announced today that the central parity of RMB was 6.3495, an increase of 101 points over the previous trading day.

Traders pointed out that this morning there are still many times on the coast.

But at the end of the afternoon, the price rise of the two places was further widened. The demand for foreign exchange also shifted to a stop loss earlier, which led to a rapid rise in the coast. However, due to the severe market volatility, the half day turnover was down compared with yesterday.

"CNH is so strong, gap is upside down again, CNY has no reason not to follow.

I did not expect the RMB to depreciate too much. I feel that CNY still has some space. Of course, the trend of appreciation is not very likely. The economy has not yet seen clearly. "

A Chinese bank trader pointed out.

The data released by the safe today show that in September this year, China

The total turnover decreased by 24.6% compared with August, and the forward turnover decreased by more than 80%.

Market participants believe that after the 8.11 "new exchange reform", the market will gradually become calm, and a series of intensified supervision measures adopted by regulators will also play a role.

As of 14:45 Beijing time, the offshore RMB exchange rate against the US dollar was 6.3251, an appreciation of 316 points, an offshore exchange rate of 6.3270, an appreciation of 225 points.

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Following yesterday's surge, the offshore renminbi against the US dollar (CNH) remained strong today, rising by more than 300 points in the day, and the offshore renminbi has also risen sharply.

As of 15:50, the offshore people rose by 0.54% (343 points) to 6.3183, the biggest increase since 2010.

The offshore renminbi also rose 0.54% (343 points) to 6.3229, or the biggest increase in March 2014.

The price difference between shore and offshore is upside down 46 points.

Today, the central bank significantly raised the central parity of RMB to 6.3495, and the increase was 101 basis points, the largest since October 21st.

The median price was 6.3596 yesterday, closing at 6.3567.

On Thursday, when the Fed hinted that interest rates might rise in December, emerging market currencies fell, but the Yuan went against the trend. The offshore renminbi rose by more than 300 points a day, and the price difference at 421 o'clock on the previous day was basically smoothed out.

As for why the RMB can be so strong after the central bank lowered its interest rate, the people's livelihood macro team believes that the answer to whether RMB will be included in the basket of IMF currencies will be announced in November. The central bank will have strong intention to maintain stability and will not allow the RMB to have a larger depreciation rate in the short term.