China News Service, Beijing, March 13 (Xia Bin) After continuing the previous downward trend for three consecutive trading days, the central parity rate of the RMB against the US dollar fell below 7. China Foreign Exchange Trading Center announced on the 13th that the median exchange rate of RMB to USD was reported at 7.0033, a new low value in half a month, which was 392 basis points lower than the previous trading day.
In the foreign exchange market, the onshore and offshore RMB to USD spot exchange rates have fallen below 7 on March 12. As of 12:00 on the 13th, the two have reported 7.0061 and 7.0199 respectively; the dollar index rose above 97 on March 12 The two integer levels of 98 and 98 reached a maximum of 98.3, and then fell slightly. As of 12:00 on the 13th, the US dollar index reported 97.39.
The global financial market saw a “tsunami” this week: the “melt-off” of the stock markets in more than 10 countries, a sharp drop in oil prices, and a severe drop in gold.
Xie Yaxuan, chief macro analyst of China Merchants Securities, said that the recent sharp decline in U.S. stocks has caused some leveraged transactions to be closed. In order to increase margin, investors have to sell other assets in exchange for US dollars. This has led to the decline of other assets, including gold. Only the US dollar index rose.
He further stated that China's financial market is continuously opening up and gradually integrated into the world. Some international funds are also in the Chinese market, and some of these high-liquidity funds may flow out, putting pressure on the RMB exchange rate.
Xie Yaxuan emphasized that from the perspective of the prevention and control of the new crown pneumonia epidemic and the resumption of labor, China has taken the lead in stabilizing the world, and the market will re-recognize the strong fundamentals of RMB assets in the future. (Finish)