China-Singapore Jingwei Client, January 18, according to data from the website of the Foreign Exchange Trading Center, on the 18th, the central parity of the RMB against the US dollar was reported at 6.4845, a depreciation of 212 basis points.

The median price of the previous trading day was reported at 6.4633, the closing price of onshore RMB at 16:30 was reported at 6.4752, and the closing price of RMB at 23:30 night trading closed at 6.4817.

　　Screenshot of the Forex Trading Center website

　　Regarding the trend of the RMB exchange rate last year, Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, introduced at the 2020 financial statistics press conference on the 15th that at the end of 2020, the RMB exchange rate against the US dollar appreciated by 6.9% from the end of the previous year, and the fluctuation range did not exceed the historical level, such as 2007 The volatility range in 2008 and 2008; the RMB appreciated by about 4% against a basket of currencies. Historically, the annual volatility range is also in the middle.

The annual average exchange rate of the RMB against the US dollar was 6.90 yuan, which was the same as the 2019 average.

　　"In general, the RMB exchange rate remains basically stable at a reasonable equilibrium level, which is consistent with my country's foreign trade and economic fundamentals. Compared with other major currencies, the RMB exchange rate against the US dollar has appreciated at a moderate rate." Sun Guofeng Say.

　　What is the future exchange rate trend?

Sun Guofeng pointed out that the future trend of the RMB exchange rate depends on factors such as domestic and foreign economic situations, international balance of payments and changes in the international foreign exchange market.

In general, the exchange rate of the RMB will rise and fall, and two-way floating will become the norm. It will neither continue to appreciate nor depreciate, and will remain basically stable at a reasonable and equilibrium level.

　　Last Friday, the U.S. dollar rose against a basket of currencies, hitting a four-week high, as data showed that the new crown pneumonia epidemic has continued to affect the economy, which boosted the safe-haven demand for the U.S. dollar.

Foreign media quoted analysts as saying that the US dollar has rebounded from a three-year low starting last week. If economic conditions deteriorate, this trend may have room for further continuation, but the longer-term outlook for the US dollar remains weak.

　　Guan Tao, chief economist of Bank of China Securities and director of the China Chief Economist Forum, previously stated that the renminbi began to fluctuate in appreciation in June last year and has now entered the eighth month with a cumulative increase of more than 10%.

The appreciation of the renminbi in the second half of last year was a resonance of multiple positives. One is that China’s epidemic situation is well controlled, the economy is recovering well, and the dollar is weak, causing the renminbi to appreciate all the way.

At the beginning of this year, the overall strength of the renminbi is good for continuing to play a role.

(Zhongxin Jingwei APP)