The Central Parity Of RMB Against The US Dollar Has Dropped By 247 Basis Points To 6.7558.

Yesterday, the renminbi was against the US dollar.

The intermediate price dropped sharply by 247 basis points to 6.7558, refreshing the new low price of the RMB to the US dollar in the past 6 years.

Wang Chunying, a spokesman for the State Administration of foreign exchange and director of the balance of Payments Division, responded at a press conference held by the State Council in New Zealand on the morning of 21. The recent weakening of the RMB against the US dollar was mainly due to the strengthening of the US dollar exchange rate as expected by the Federal Reserve raising interest rates.

Compared with other currencies in the world, the depreciation rate of RMB against the US dollar is not large.

Wang Chunying said that under the influence of the external environment, the short-term fluctuation of the RMB exchange rate is normal and within the scope of explanation. The domestic market is expected to remain basically stable.

The Fed's long-term interest rate "boots" have also affected China's cross-border capital flows. This year, cross-border funds in China have been faced with outflow pressure.

However, the latest data released by the foreign exchange bureau yesterday showed good momentum, and the pressure on cross-border capital outflows is gradually easing.

Wang Chunying judged that under the support of economic and financial fundamentals, the future of China's Cross-border

It is still expected to remain basically stable. At the same time, the Fed's rate hike is a relatively slow process, and the market consensus is gradually taking shape, so the relevant impact is expected and digestible in the market.

"From the present point of view, the Fed's rate hike is a relatively slow process, and the relevant impact is also in the predictable and digestible range of the market.

Because of the twists and turns of the global economic recovery, the impact of Britain's "off Europe" and other factors is constantly increasing, coupled with the instability of the US's economic growth and employment improvement. The Fed is very cautious about raising interest rates.

Therefore, the Fed's rate hike should be a relatively slow and expected process.

Wang Chunying judged.

From the end of last year, the impact of raising interest rates on the US dollar exchange rate is at the end of last year.

Before the first increase in interest rates, the US dollar index increased, but began to fall after raising interest rates. Since 2016, the US dollar index has been slightly oscillating in a certain range, and the current level is basically the same as that at the beginning of the year.

In contrast, the US dollar index increased by 13% and 9% in 2014 and 2015 respectively.

From this perspective, the Fed's interest rate increase does not mean that the US dollar will continue to strengthen.

More importantly, China's economy has generally maintained a stable operation pattern, and the ability to resist external shocks has been reflected positively.

Wang Chunying pointed out that historical experience shows that China's economic and financial situation is the key to cope with the Fed's interest rate increase. China has advantages in this regard: first, China's economy is running better than expected and at a high level in the world; secondly, China's ability to withstand external shocks is strong, its financial situation is relatively good, its financial system is generally sound, its current account is in continuous surplus and its foreign exchange reserves are very abundant. Thirdly, the flexibility of RMB exchange rate and the two-way flow of cross-border capital are further widened, which is conducive to better regulating cross border capital flows in China.