2. Take the central parity of RMB against the US dollar as an example. Before the opening of the inter-bank foreign exchange market every day, market makers, including Bank of China, refer to the closing exchange rate of the inter-bank foreign exchange market the day before, comprehensively consider the foreign exchange supply and demand situation and the exchange rate changes of major international currencies, and provide the China Foreign Exchange Trading Center with a mid-price quotation. The trading center takes the quotations of all market makers as calculation samples. After excluding the highest and lowest quotations, the remaining market makers' quotations are weighted and averaged to get the central parity of RMB against the US dollar on that day. The weight is determined by the trading center according to the trading volume and quotation of market makers in the inter-bank foreign exchange market. It should be emphasized that the central parity of RMB exchange rate is based on the independent quotation of market-making banks.
China Foreign Exchange Trading Center announces the central parity of RMB exchange rate once a day, with one price per day. On the other hand, the daily trading price of RMB against the US dollar in the inter-bank foreign exchange market can fluctuate within 2% of the central parity of RMB against the US dollar on that day. This is the market transaction price, which fluctuates at any time, and is also reflected in the bank's foreign exchange settlement and sale quotation, which is multi-priced every day.
The above contents are for your reference. Please refer to the actual business regulations.
If you have any questions, please contact online customer service of Bank of China.
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