Money Market: The Attraction Of RMB Assets Is Obviously Enhanced

Since the end of May this year, the RMB has maintained a trend of dynamic appreciation. Today, the spot exchange rate of RMB against the US dollar has reached a new high.

This year, the spot exchange rate of RMB against the US dollar fell to the lowest point of 7.1600 at the end of May, and then rose sharply for several consecutive working days. Subsequently, the spot exchange rate fluctuated slightly. Since the beginning of September, the appreciation momentum of RMB has not decreased, breaking several resistance levels in succession, rising to 6.7613 today. Industry insiders said that compared with the United States and other major economies, China has taken the lead in controlling the new crown pneumonia epidemic, gradually repairing the economy, easing but more restrained monetary policy, and significantly enhancing the attractiveness of RMB assets. In addition, the sharp decline in the US dollar index since the end of May is also an important reason.

Wang Youxin, researcher of the Bank of China Research Institute: on the one hand, affected by the extremely loose monetary policy of the Federal Reserve, the Federal Reserve will maintain a relatively loose monetary policy environment and a low interest rate environment for a long time in the future. On the other hand, the fall of the US dollar index, the repeated epidemic situation in the United States and the slowdown of the US economic recovery have also provided more support for the RMB exchange rate.

Wang Youxin said that the appreciation of the RMB has strongly supported the attraction of RMB assets, and the attraction of China's treasury bonds to foreign investment has increased, and the inflow of foreign capital is expected to be beneficial to China's financial market.

Wang Youxin, researcher of the Bank of China Research Institute: at present, the RMB exchange rate is in a relatively strong channel and cycle. In fact, it is conducive to the stability of the financial market, the inflow of cross-border capital, and the promotion of RMB internationalization in the world.