China News Agency, Beijing, January 5 (Reporter Xia Bin) According to data released by the China Foreign Exchange Trading Center on the 5th, the central parity rate of the RMB against the US dollar was 6.8926, an increase of 205 basis points from the previous trading day, and rose back to the 6.8 range.
In the foreign exchange market, the spot exchange rate of the onshore and offshore renminbi against the U.S. dollar has previously risen above 6.9.
The "New Year's Eve" rise in the exchange rate of the RMB against the US dollar at the end of 2022 will continue until the beginning of 2023.
According to the foreign exchange research report released by CICC on the 4th, in the past five trading days, the U.S. dollar index has generally rebounded, but the renminbi has risen against the trend by 500 basis points, and the short-term momentum is relatively strong.
The report believes that the rapid recovery of the yuan is not surprising.
Although the appreciation of the RMB exchange rate in the fourth quarter of 2022 is considerable, the three major factors that promote the recovery of the RMB may continue to perform in the short term and cause the RMB to rise further.
The appreciation of the RMB exchange rate around the New Year is still related to a number of supporting factors at the end of last year, including the possible faster-than-expected recovery of the Chinese economy, seasonal strength, and the relative level of the US dollar index.
Pang Ming, Chief Economist of Jones Lang LaSalle in Greater China, told reporters from China News Agency that the rise of the RMB exchange rate is expected to bring considerable exchange gains to industries with a high proportion of US dollar liabilities such as aviation. For industries with large exposure to priced imported raw materials, it can also reduce part of the cost of import purchases.
He also reminded that if the RMB exchange rate rises too quickly beyond a reasonable and balanced level, enterprises will also face exchange rate risks in the process of using US dollar funds and exchange conversion, especially for export-oriented foreign trade enterprises. The pressure brought certain challenges and uncertainties to the stabilization and recovery of the macro-economy, as well as the stable scale and optimal structure of import and export trade.
Pang Ming suggested that during the rising cycle of the RMB exchange rate, export-oriented foreign trade companies may consider using derivative products such as options or forward locks to manage exchange rate risks, and may also consider using RMB as a settlement method to avoid exchange rate risks.
(use up)