RMB Long-Term Gains Hit The Biggest Week

The market expects that the Chinese government will maintain the RMB exchange rate during the G20 meeting, and RMB long-term gains will be the biggest in a week.

Beijing time 11:37, December non principal forward RMB contract rose 0.15%, to 1 U.S. dollars to 6.7770 yuan, the biggest increase in February 15th.

Today, the RMB on shore is stable at 6.5195.

The central bank raised the median price of the Renminbi today by a slight increase of 21 points to 6.5165.

The offshore renminbi is basically maintained at 6.5230.

G20 finance ministers and central bank governors will be held in Shanghai from Thursday to Friday (25-26 February).

Lagarde, chairman of the International Monetary Fund (IMF), said on Friday that central bankers and finance ministers should focus on the spillover effects of their policy decisions on the global economy and the policies currently being implemented at the G20 meeting.

This month, Zhou Xiaochuan, governor of the people's Bank of China, said that there was no foundation for sustained depreciation of the RMB, and that the trend of exchange rate reform was unwavering, but "we are patient."

Zhang Jiantai, a foreign exchange strategist at Mizuho bank in Hongkong, said that before the G20 finance ministers' meeting was held on February 26/27, the Central Bank of China would maintain the stability of the RMB so as to reduce criticism and discussion about China's foreign exchange policy.

Wall Street knowledge website mentioned earlier that the former central bank monetary policy committee member, Tsinghua University China and the world economy research center director Li Daokui in "Chinese economy 50 person forum 2016 annual meeting" indicated that, in the early 13th Five-Year the five major tasks completes the foundation is the stable finance.

The overall foundation of China's finance remains unstable and unstable, and the relationship between finance and the real economy today is more complicated than ever before.

Further, he suggested that it should be clear and steady.

We should speed up basic rectification work, such as debt restructuring of bankrupt enterprises and stable exchange rate.

He said frankly that the window of exchange rate reform has been closed.

He said that in order to carry out the exchange rate reform, we first need the external exchange rate view of our country to be more consistent.

Under the circumstances, the capital account will be gradually opened.

"There is opportunity for exchange rate flexibility. Now the time has passed."

With stability as the main factor, there must be no great pressure for further devaluation.

Bloomberg quoted Xia Le, an analyst at Spain's external bank, saying: "it is unwise to make short money now. Zhou Xiaochuan's speech has released the signal of maintaining stability."

According to a Reuters poll of 20 fund managers, foreign exchange traders and analysts, the renminbi's bet against the US dollar fell to its lowest level since the end of November.

For the RMB exchange rate, Li Daokui said that the time window for China's round of exchange reform has been closed, and the exchange rate should be mainly stable, which can not generate too much devaluation pressure on the RMB.