Sino-Singapore Jingwei Client, October 14 According to the China Foreign Exchange Trading Center, on the 14th, the central parity of the RMB against the U.S. dollar was lowered by 177 basis points to 6.7473, a two-day reduction.

Yesterday (13th), after four consecutive days of rising, the central parity of the renminbi depreciated 170 basis points to 6.7296.

  Source: China Foreign Exchange Trading Center

  Regarding the RMB exchange rate, both the offshore RMB and the US dollar have shifted from post-holiday surges to corrections, and they have stabilized.

On the 13th, the onshore renminbi against the U.S. dollar closed at 6.7450 yuan at 23:30 Beijing time, up 10 basis points from the day and night closing of the previous trading day; the offshore renminbi (CNH) against the U.S. dollar closed at 6.7392 in late New York, compared with the end of the previous trading day in New York. The market rose 38 basis points.

  A few days ago, the central bank decided to reduce the foreign exchange risk reserve ratio for forward foreign exchange sales to zero from October 12.

Guan Tao, chief economist at Bank of China Securities, pointed out that this will help reduce the cost of foreign exchange derivatives transactions and facilitate corporate exchange rate hedging operations.

Lian Ping, Chief Economist and Dean of the Research Institute of Zhixin Investment, said, “The downward cost of purchasing foreign exchange will encourage customers to participate more actively in RMB transactions and increase the scale of RMB funds entering the market. This will help balance the supply and demand of the foreign exchange market, and thus Curb the expectation of long-term RMB appreciation."

  As of press time, onshore renminbi fell 54 basis points against the US dollar to 6.7439 yuan; offshore renminbi fell 13 basis points to the US dollar to 6.7405 yuan.

  The Sun Binbin team of Tianfeng Securities stated that if the RMB exchange rate appreciates excessively, the central bank may also take measures such as adjusting countercyclical factors.

The research report issued by CICC believes that in the next 3 to 6 months, the RMB exchange rate may continue to appreciate due to factors such as improving fundamentals and foreign capital inflows.

  Guan Tao pointed out that there will still be many internal and external uncertain and unstable factors in the future, and factors affecting the appreciation and devaluation of the RMB exchange rate will exist at the same time.

Stability of the exchange rate does not mean fixed. The coexistence of factors of appreciation and devaluation also causes the exchange rate to rise if it rises too much, and it rises if it falls too much, showing a two-way fluctuation of ups and downs.

In the short term, we need to pay attention to factors such as favorable recovery, foreign exchange policy adjustments, overseas epidemic rebound, surprises in the US election, and changes in financial markets, which may trigger market sentiment fluctuations and RMB exchange rate corrections.

(Zhongxin Jingwei APP)