Sino-Singapore Jingwei Client, September 16 According to data from China Foreign Exchange Trading Center on the 16th, the central parity of the RMB against the US dollar was reported at 6.7825, an increase of 397 basis points, breaking the 6.8 mark.
On the previous trading day, the central parity of RMB against the US dollar was reported at 6.8222, the closing price at 16:30 was at 6.7775, and the closing price at 23:30 was at 6.7818.
Screenshot source: China Foreign Exchange Trading Center
As of press time, offshore renminbi against the U.S. dollar has risen in the short-term, breaking the 6.77 mark and now at 6.7686; onshore renminbi has also recovered from the 6.77 mark to 6.7674 against the U.S. dollar, now at 6.7728.
The Securities Times issued a statement that as a global currency, the weakness of the US dollar index will have a profound impact on the global financial market and economic cycle.
As far as the financial market is concerned, many analyses point out that the current US dollar has entered a weak cycle, which will support gold prices and some emerging market currencies represented by the RMB; at the same time, the strong RMB exchange rate will also increase the attractiveness of RMB assets The continued inflow of foreign capital will provide certain support to the domestic stock and bond markets.
Guan Tao, chief economist of Bank of China Securities, pointed out to the Sino-Singapore Jingwei client that the RMB exchange rate has shifted from undervalued to balanced and reasonable.
He pointed out that the trend of RMB appreciation has not yet been established. Given that there are many uncertain and unstable factors, it is too early to say a new cycle; at least it is more certain that even if the RMB appreciates, under the circumstances of increased flexibility of the exchange rate mechanism, appreciation will be It may be a big opening and closing instead of small steps.
Li Haijing, an investment consultant for Hengfeng Bank's private bank, believes that in the short term, the U.S. dollar will find it difficult to change its trend of decline under the framework of the new monetary policy, and the appreciation of the renminbi may continue for some time.
However, in the context of the approaching US general election, the pressure of stage devaluation still exists, such as the Sino-US trade friction and the severe global epidemic prevention and control situation.
In the medium and long term, the renminbi has a strong foundation. On the one hand, the internationalization of the renminbi and the increase in the attractiveness of renminbi assets are becoming important factors to promote the appreciation of the renminbi; on the other hand, China’s economic strength, institutional dividends, technological innovation, etc. Factors that help the economy to be basically geared up will provide key support for the yuan's mid- to long-term appreciation.
(Zhongxin Jingwei APP)