China-Singapore Jingwei Client, March 25th. According to data from the China Foreign Exchange Trading Center, on the 25th, the central parity of the RMB against the US dollar rose by 257 basis points to 7.0742. The median price of RMB against the US dollar was 7.999 on the previous trading day.
Source: China Foreign Exchange Trading Center
On March 25, the onshore renminbi exchange rate against the US dollar appreciated by more than 200 points, surpassing the 7.06 mark; meanwhile, the offshore renminbi exchange rate against the US dollar fluctuated around 7.07. The US dollar index fell 0.42% to 102.0339. As of 10:06, the onshore and offshore RMB against the US dollar were reported at 7.0560 and 7.0669 respectively.
Source: Wind
On Monday (23th), the Federal Reserve launched unprecedented unprecedented quantitative easing, and launched a series of market rescue measures. In addition, US President Trump issued four successive pushes to urge Congress to approve stimulus measures and other favorable factors. The US dollar index fell, and the equity market, gold and crude oil all started a soaring pattern.
On the same day (25th), the central bank announced that the current total liquidity of the banking system is at a reasonable and sufficient level, and no reverse repurchase operation will be carried out on March 25. Wind data shows that no reverse repurchase expires on the 25th. It should be noted that this has been the central bank's 27-day suspension of reverse repurchases.
On the 22nd, the State Council Office held a press conference. Chen Yulu, deputy governor of the People's Bank of China, pointed out that due to the recent international epidemic, the international foreign exchange market has experienced large fluctuations. Although the RMB exchange rate has also fluctuated, it has remained at a reasonable and balanced level. Basic stability. The exchange rate of RMB against the US dollar is expected to fluctuate around 7 yuan in the future, with depreciation and appreciation, and will continue to float in both directions.
"The spread between local and foreign currencies in the financial market is still in a suitable range, and China's foreign exchange reserves are adequate and stable, all of which have provided strong support for the continued stability of the RMB exchange rate." Chen Yulu said.
Xuan Changneng, deputy director of the State Administration of Foreign Exchange, also said that the RMB exchange rate will fluctuate in both directions within a reasonable range, and there is no basis for substantial depreciation.
China Merchants Securities macro research report pointed out that from the perspective of the reference currency basket, the US dollar is strong, and the relative trend of the RMB will be weak. Behind the strength of the US dollar is the "distress" in the liquidity of the US dollar caused by the sharp decline in a series of asset prices of US stocks and the need for additional margin. Such an abnormality must not last. The US dollar index will fall, and the RMB will change from weak to strong.
Zhongyuan Securities Research Report pointed out that with the continuous rebound of the exchange rate of RMB against the US dollar, the core assets of A shares have been boosted, further strengthening the confidence of investors to participate in the rebound. If the external disk can effectively stop the fall and stabilize the rebound, it will have a significant effect on the continued rebound of the A-share market. (Zhongxin Jingwei APP)