RMB'S Dependence On The US Dollar, CNH'S Downside Worries Continue To Ferment

The US dollar / RMB inquiry system was reported at 6.1492 noon and 6.1420 on Monday.

The central parity of US dollar / RMB central bank was 6.1462, and Monday's middle price was 6.1452.

In the overseas non deliverable forward foreign exchange (NDF) market, the US dollar / Renminbi one year variety is newly reported at 6.2405/25, ending on Monday at 6.2380.

The latest offshore dollar / RMB spot report in Hongkong was 6.1606/26, and the last trading day was 6.1688.

Traders said that after the early opening of the market, the supply and demand basically recovered to a relative equilibrium, and the initial low was 6.1518 yuan, which was the lowest level in 3 weeks.

CNH fell sharply after closing on Monday, down 359 points, to nearly 1 and a half months low of 6.1757.

Traders added that on Monday, offshore hedge funds dumped the yuan into the US dollar, which affected China's poor economic data. The Deputy Prime Minister stressed the need to strengthen exports. The market is expected to have follow-up administrative measures.

"After the close of the day, the offshore market is also poor due to poor liquidity. The selling of RMB also causes a sharp fluctuation in price and triggers stop loss.

However, after that, the price has recovered, and this huge depreciation is difficult to sustain. The price difference between RMB and foreign exchange will still be narrowed.

Cao Honghui, the vice president of the China Development Bank Research Institute, quoted the Xinhua news agency as saying that the internationalization of RMB is fundamentally a process of market selection.

Constantly create conditions, through institutional arrangements, so that money can be better accepted and chosen for the market.

Yi Xianrong, a researcher at the Financial Research Institute of the Chinese Academy of Social Sciences, said that China's financial system lags behind the real economy as a whole, and that private financial risks still exist and interest rates are too high, which are all factors hindering the internationalization of RMB.

international

On the other hand, the dollar weakened on Tuesday, and investors waited for the new guidelines issued by the FED on interest rates, so they did not want to pay more attention. The Aussie dollar held above the 6 month low.