The Foreign Exchange Market: The Price Difference Between The Two Sides Is Now Expanding To &#34, And The Largest Since The New &#34.

The risk of RMB's further devaluation has increased significantly, and its adjustment depends on the subsequent trend of exchange rate policy.

CICC expects policy uncertainty to raise the risk premium and make the RMB short term pressure.

The elasticity of RMB exchange rate has become an important source of new uncertainty rather than a buffer mechanism against external shocks.

China's central bank intervened in the market to boost renminbi, intervention

Part of the reason is to boost the stock market.

Since then, the offshore exchange rate has stabilized at 6.51 levels, and the offshore price gap has broken to 6.64 points, extending to more than 1200 points, the largest since the "new exchange reform".

Today, the central parity of RMB against the US dollar was 6.5169, the lowest since April 2011, but it was 6.5173 above yesterday's closing price and much higher than the closing price of the night market. Yesterday, the middle price was 6.5032 and 6.5173 in the afternoon.

Offshore RMB (CNH) against the dollar, the Asian market initially broke through the 6.64 pass, reaching 6.6438 once.

At the beginning of the shore, the shore also rebounded about 100 points.

But in the afternoon the offshore renminbi broke 6.64.

The difference between the offshore and offshore RMB exchange rate widened to more than 1200 points, the largest since the "new exchange reform" in August 12th.

The former president also quoted traders as saying that the Central Bank of China today is trying to push the offshore renminbi to strengthen against the US dollar.

yesterday

Last week's big fluctuations.

Offshore renminbi tumbled 600 points, hitting 6.63, or nearly 1%.

Offshore and offshore spreads widened to 1200 points.

Last night, after the opening of the first night trading of RMB,

Rapid dive, the offshore RMB declines expanded to 0.65% within one hour.

By the end of 23:30 hours in Beijing, the renminbi fell 0.62% against the US dollar, the biggest decline since August, at 6.5338 yuan, the weakest since April 2011.

As for why, after the extension of the foreign exchange paction time, the closing price of the 16:30 inquiry price is still used, the central bank has said that if the exchange rate at 23:30 is the closing price, the market maker's reference to the price for the next day's intermediate price may weaken the benchmarking and representativeness of the intermediate price.

If the market maker does not refer to the quotation of the next day's middle price because of the lack of representativeness of the closing price, it will also affect the authority of the intermediate price quotation mechanism, resulting in the structural deviation between the closing price and the next day's intermediate price.

Xingye Wang Han believes that after the 811 reform, the market believes that the risk of the market itself is greater than that of the central bank.

However, after the central bank unexpectedly sharply lowered the central parity price yesterday, the market believed that the central bank once again became the main source of exchange rate risk.

Although it is estimated that the central bank has enough strength to prevent systemic risk, the marginal change of the central bank's attitude in the near future needs constant attention.