Around 29 17: 25 Beijing time, offshore RMB suddenly soared. In a short period of time, the RMB rose by 860 points against the US dollar, and the lowest level of the US dollar against the RMB reached 7. 1 140. From the highest point of USD against RMB that day, RMB soared 1 1,000 points in just four hours. After 22: 30 Beijing time on the 29th, the offshore RMB continued to rise strongly, reaching a minimum of 7.0985, and the Big bounce in the day exceeded 1 100.

Starting from the short-term high of RMB against 7.2673 set on the 28th, the RMB soared as high as 1600 points.

The reason why the RMB will launch a big counterattack may be driven by three aspects:

First, on the evening of the 28th, the central bank said that the current foreign exchange market is generally standardized and orderly, but there are also some phenomena such as "speculation in foreign exchange" by a few enterprises and illegal operation by financial institutions, so it is necessary to strengthen guidance and rectification. It must be recognized that the position of exchange rate is unpredictable and two-way floating is the norm. Don't bet on the unilateral appreciation or depreciation of the RMB exchange rate, you will lose if you gamble for a long time;

II. The Monetary Policy Committee of the People's Bank of China held a regular meeting in the third quarter of 2022. The meeting pointed out that deepening the market-oriented reform of the exchange rate, enhancing the flexibility of the RMB exchange rate, guiding enterprises and financial institutions to adhere to the concept of "risk neutrality", strengthening expected management, and maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level.

Third, Reuters suddenly released an exclusive report, saying that efforts should be made to curb RMB depreciation. But this report has not received an official response. However, after the publication of this report, the RMB began to appreciate very quickly.