Phased Stabilization Of RMB Exchange Rate Highlights

Reporters learned from the foreign exchange trading center that on the 8 day, the central parity of the RMB against the US dollar was 6.5041, up 72 basis points from the previous trading day, returning to the 6.50 level, the highest level since January 4th, and 449 bases in four consecutive trading days.

Analysts believe that the recent relative strength of the RMB exchange rate, the narrowing of the offshore exchange rate and the narrowing of the latest foreign exchange reserve have reflected the short-term depreciation expectations of the RMB exchange rate has been effectively alleviated. The weakening of the Fed's short-term interest rate increase has created conditions for the RMB exchange rate to remain strong in the short term.

In March 8th, the US dollar index continued to shake down as Fed officials divergent views on whether inflation could meet the need to raise interest rates. The US dollar index rose to a low of two weeks to 96.90.

In the recent weakening of the US dollar, on the 7 day, the central parity of the RMB against the US dollar reported 6.5113, a 171 basis point increase over the previous trading day, setting a new high in the past two months, which is also the central bank's central parity of three consecutive trading days.

In addition, the weakening of the US dollar eased the expected depreciation of the RMB exchange rate, and the spot exchange rate of RMB also rose with the middle price in recent days. The exchange rate difference between the offshore and offshore markets continued to narrow, and even the phenomenon of "upside down" appeared. Arbitrage investors were unable to take the opportunity to leave the field, and the offshore market in the offshore area strengthened to further enhance their linkage.

In turn, it further stabilized the market's expectation of short-term stabilization of the exchange rate.

Data released by the people's Bank of China on 7 may show that in February, the balance of foreign exchange reserves in China was US $3 trillion and 200 billion, although the US dollar fell by another US $28 billion 600 million last month. It further shows that the RMB exchange rate has stabilized since February, and the pressure on capital outflow has slowed down. The depreciation rate of RMB exchange rate is expected to ease.

"February

The sharp narrowing is mainly due to the steady stabilization of the RMB exchange rate.

Wen Bin, principal investigator of Minsheng Bank, told reporters that since the Spring Festival this year, the RMB has rebounded and rebounded on the offshore and offshore exchange rates of the US dollar, and the willingness of enterprises and residents to sell and sell foreign exchange has been stable.

From the next stage, the Fed continues to raise interest rates and is expected to weaken.

The exchange rate will increase at the current level, and foreign exchange reserves will not recur in the first few months.

Yi Gang, vice governor of the central bank, made clear that China's foreign exchange reserves will remain at a reasonable and moderate level, and that sufficient foreign exchange reserves can keep the RMB exchange rate basically stable at a reasonable and balanced level.