Exchange rate is the exchange rate between currencies of different countries, which directly affects international trade and investment. It is very important for cross-border economic activities and personal asset management to understand the causes and influencing factors of exchange rate fluctuations and how to conduct foreign exchange transactions. What is the open market interest rate brought by the following small series? Let's take a look at it together, hoping to bring some reference.
What is the open market interest rate?
From the perspective of open market business, open market interest rate is the link between fiscal policy and monetary policy. The open market operation is that the central bank regulates the money supply by buying and selling securities. Open market interest rate There are two main ways for the central bank to operate the open market: forward (reverse repurchase) and buying and selling central bank bills. Open market interest rate forward (reverse repurchase) has a short term. As short as 7 days. Central bank bills are divided into three months, 1 year and three years. The maturity of central bank bills is longer than that of forward (reverse repurchase). Functionally speaking, both open market interest rates can regulate the liquidity of commercial banks. Compared with central bank bills, open market interest rate forward (reverse repurchase) will reduce operating costs, while locking funds is more effective.
When we increase the money supply in the market, we should buy securities in the financial market. On the other hand, sell securities. Open market interest rate and interest rate marketization are the key to promote the development of open market business. Market interest rate Only when the interest rate is fully marketized can the open market operation really play its role. Open market operation-regulating money supply and demand to guide the market benchmark interest rate-affects the deposit and loan interest rates of financial institutions. Such a "chain" of open market interest rates makes open market interest rates gradually become the main path for the central bank to regulate interest rates.
From the perspective of open market business, open market interest rate is the link between fiscal policy and monetary policy. In essence, the national debt policy has two attributes: fiscal policy and monetary policy. It is in this sense that the open market interest rate makes the national debt market become the core financial market in the financial system of market economy countries. The open market interest rate not only provides liquidity for the market, but also provides trading accuracy for the market.
What does the downward adjustment of RMB exchange rate mean?
The downward adjustment of RMB exchange rate means the appreciation of RMB, and the downward adjustment of RMB exchange rate means that the amount of 1 USD against RMB is reduced. For example, the original 1 USD can be changed from 8 yuan RMB to RMB. After the exchange rate is lowered, 1 USD can only be exchanged for 6 yuan RMB, which shows that RMB has appreciated against USD. The appreciation of RMB may lead to the inflow of foreign capital, which is beneficial to the A-share stock market and also has a certain impact on import and export enterprises:
The appreciation of RMB means the devaluation of other countries' currencies. For other countries, the same thing used to be 8 yuan, but now it needs 10 yuan. Therefore, for these enterprises, if the cost increases, they will not choose to import, which is not conducive to China's export.
On the other hand, the appreciation of RMB, for our country, used to cost 10 yuan to buy a thing, but after the appreciation, the same thing may only need 8 yuan, and the cost paid by importing enterprises will be reduced, so it is good for importing enterprises.
What does the RMB exchange rate rise mean?
The rise of the RMB exchange rate means that the RMB has become more valuable, which means that the purchasing power of the RMB has increased. For example, in the past, it took 654.38 million yuan for residents to buy an imported car. After the exchange rate rises, it may only need 80,000 RMB now, which is beneficial to imports. At this time, it also reflects that a country's economic situation is good, because in general, only when the economy grows healthily and steadily can the RMB exchange rate appreciate.
However, everything has advantages and disadvantages. The long-term rise of RMB exchange rate will also lead to people's long-term appreciation, and RMB appreciation also has certain disadvantages, mainly in:
1, RMB appreciation will bring greater deflationary pressure to China;
2. The appreciation of RMB exchange rate will lead to a decline in attracting foreign investment and reduce foreign direct investment in China;
3. It has caused great harm to China's foreign trade export;
4. The appreciation of RMB exchange rate will reduce the profit rate of China enterprises and increase the employment pressure;
5. The fiscal deficit will increase due to the appreciation of RMB exchange rate, which will also affect the stability of monetary policy.
What exactly does omo interest rate mean?
Omo interest rate refers to the open market operating interest rate. The change of open market operating interest rate reflects the relationship between capital supply and demand, and can understand the narrowing and widening spread, which has a certain effect on stabilizing macro leverage ratio. Open market operation is the main monetary policy tool for the central bank to control the base currency and regulate the market flow.
Within the framework of China's monetary policy, raising interest rates means raising the benchmark interest rate of deposits and loans, which has a strong intention of active regulation. The upward trend of the bid-winning interest rate is the embodiment of the accompanying market under the action of capital supply and demand, which mainly depends on the market. The open market operating interest rate has its quantitative and price purposes. When the focus is on the price target, the quantity should go with the market, and when the focus is on the operation quantity, the price should also change with the operation quantity. The central bank has more means and does not need to over-interpret the quantity and price of each operation. Interest rate flexibility is conducive to deleveraging, bubble suppression and risk prevention.
OMOMLFLPR relation
OMO: the full name of open market operation is the main monetary policy tool for the central bank to operate the base currency and regulate market liquidity. The central bank conducts securities and foreign exchange transactions with designated dealers to achieve the purpose of monetary policy regulation.
MLF: full name of medium-term lending facility, established by the People's Bank of China in September 2065438+2004. Lin Long Investment pointed out that MLF is the monetary policy tool of the central bank, which is used to provide the medium-term base currency, ensure the overall stability and moderation of liquidity in the banking system and support the reasonable growth of money and credit. Mainly for commercial banks and policy banks that meet the requirements of macro-prudential management, bidding is adopted.
LPR: the full name of the loan market quotation, which is the loan interest rate executed by commercial banks for their best customers. Other loan interest rates can be generated by adding and subtracting points on this basis.
The LPR shall be submitted by 18 quotation bank to the National Interbank Funding Center before 9: 00 on the 20th of each month (postponed in case of holidays), with a step of 0.05 percentage points. The National Interbank Funding Center will calculate the LPR by rounding to the nearest integer multiple of 0.05% after excluding the highest and lowest quotations, and announce it at 9: 30 on the same day.
SLF: standing loan facility, which is the normal liquidity supply channel of China People's Bank. Its main function is to meet the long-term and large liquidity demand of financial institutions, and it can be used in case of temporary fluctuation in liquidity in the banking system.
SLF mainly faces policy banks and national commercial banks, with a term of 1-3 months. The interest rate level is comprehensively determined according to the regulation of monetary policy and the need to guide market interest rates. The central bank uses SLF by mortgage, and banks need to provide qualified collateral, such as bond assets with high credit rating and high-quality credit assets.