Sino-Singapore Jingwei Client March 31st, according to data from the China Foreign Exchange Trading Center, the central parity of the RMB against the US dollar decreased by 404 basis points to 7.0851. As of today (31st), the central parity of RMB against the US dollar has been depreciated for two consecutive days, and this week has been reduced by 424 basis points.
The central parity rate of the RMB exchange rate in recent days. Source: China Foreign Exchange Trading Center
According to Wind data, the mid-day price of RMB against the US dollar was reported at 7.0447 on the 30th, a decrease of 20 basis points; the closing price at 16:30 was reported at 7.0970, a decrease of 42 basis points from the previous trading day; at 23:30, it closed at 7.0960, which was higher than the previous trading day Up 10 basis points.
On the other hand, the US dollar index rebounded sharply on the 30th, ending the previous week's downward trend. The US dollar index, which measures the US dollar against six major currencies, rose 0.80% on the day and closed at 99.1792 in the late market.
CITIC Futures said that the devaluation of the renminbi was mainly due to the strong appreciation of the US dollar and the gradual emergence of the epidemic's drag on the European and American economies, and investors worried that China's future export trade would be affected.
However, CITIC Futures also pointed out that during this period, the renminbi only depreciated against the US dollar and remained strong against a basket of currencies, performing well among the world's major currencies. The stability and support of the Renminbi is due to the good control of the domestic epidemic, the relatively stable economic fundamentals, the local and foreign currency spreads are still in a suitable range, and China's foreign exchange reserves are sufficient and stable.
According to the official website of the central bank, the Monetary Policy Committee of the People's Bank of China held its first quarter of 2020 regular meeting on the 26th. The meeting analyzed the economic and financial situation at home and abroad. The meeting believed that the effect of the reform of the quoted interest rate on the loan market was obvious, the actual interest rate of the loan had dropped significantly, the RMB exchange rate was generally stable, the two-way floating elasticity had increased, and its ability to respond to external shocks had been enhanced.
In addition, the meeting emphasized the need to deepen the reform of the interest rate marketization, orderly promote the conversion of existing floating interest rate loan pricing benchmarks, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. (Zhongxin Jingwei APP)