The Marketization And Benchmarking Of The Middle Price Increase Significantly.

The central parity mechanism of RMB to us dollar exchange rate has been improved.

In the future, the central parity of RMB to us dollar will continue to follow the improved standard.

We should make adjustments to give greater play to the role of the market exchange rate, further enhance the marketization and benchmarking of the middle price, and maintain the basic stability of the RMB exchange rate for a basket of currencies at a reasonable and balanced level.

In order to enhance the marketization and benchmarking of the middle price, the people's Bank of China improved the quotation mechanism of the RMB to us dollar exchange rate in August 11, 2015.

According to this mechanism, the market maker will quote the closing rate of the inter-bank foreign exchange market before the opening of the interbank foreign exchange market, and comprehensively consider the demand and supply of foreign exchange and the exchange rate changes of the international major currencies, and offer the intermediate price quotations to the China foreign exchange trading center.

Judging from the operation of the past 5 months, the exchange rate between the RMB and the US dollar is very high.

Since August 11, 2015, the gap between the central parity of the RMB against the US dollar and the closing rate of the inter-bank foreign exchange market has remained at 50 basis points for most of the time, even at a minimum of 1 basis points.

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At the end of August 11, 2015 to the end of 2015, the average difference between them was 33 basis points, which was significantly reduced by 874 basis points compared with the average point difference between 2015 and August 10, 2015.

The deviation between the RMB exchange rate and the market exchange rate has been effectively corrected, and the marketization and benchmarking of the middle price have improved significantly.

Since August 11, 2015,

The middle price of the US dollar has always been the market maker's reference to the closing rate of the inter-bank foreign exchange market, taking into account the supply and demand of the foreign exchange market and the trend of a basket of currencies.

Recently, the US dollar has strengthened again after a short adjustment after the market's impact on the Fed's interest rate hike in March. It rose to the highest level since the Fed raised its interest rate for the first time in January 6, 2016 and has appreciated by 0.6% this year.

Against this background, the market maker's reference to the closing price of the last day and the trend of a basket of currencies offered the renminbi has a tendency to depreciate toward the middle price of the US dollar exchange rate, making the final intermediate price showing a certain depreciation trend.

It should be noted that the bilateral exchange rate of RMB against the US dollar and other major currencies of the US dollar.

The direction and magnitude of the change are basically consistent, and the RMB exchange rate remains basically stable for a basket of currencies.