After the US stock market closed, at around 4: 30 on the 8th, the offshore RMB fluctuated about 50 points in the short term, hitting a minimum of 6.8239 yuan, but it still maintained an increase of more than 0.6% throughout the day.
By 4: 59, the offshore RMB was quoted at 6.82 1 1 yuan against the US dollar, up 446 points from late new york on Monday, and the whole intraday trading was in the range of 6.8759-6.8 173 yuan.
On the 7th, the offshore RMB rose above 6.83 earlier, and the onshore RMB also rose above 6.83 against the US dollar, rising nearly 300 points in the day, then the increase narrowed and retreated to the 6.84 mark. At 23: 30 on the 7th, the onshore RMB closed at 6.8332 yuan, up 198 points from the closing price on Monday night.
Before the RMB rose in the evening, Sina quoted media sources as saying that the central bank of China asked the major banks in the RMB foreign exchange market to guard against herd behavior and procyclical behavior, and not to encourage procyclical behavior. Regarding the recent RMB depreciation, the central bank expressed confidence in maintaining stability.
Sina quoted sources as saying that the central bank said it would keep the orientation of exchange rate flexibility and two-way floating unchanged and release the pressure in time. At the same time, it is suggested to activate countercyclical factors in a timely manner, strengthen the guidance of the central parity of exchange rates, strengthen the monitoring of overseas markets, and use some tools when necessary.
This is the second time that the RMB has risen on the news of the Bank of China.
Last Friday, on the evening of August 3rd, the Bank of China said that it would adjust the foreign exchange risk reserve ratio of forward sales from 0% to 20% from Saturday. On the day of last Friday, the news of offshore RMB soared by more than 500 points, and instantly broke through six major barriers, namely 6.88, 6.87, 6.86, 6.85, 6.84 and 6.83, which was nearly 800 points higher than the intraday low. On the 3rd, it fell below the onshore RMB of 6.88, and recovered 6.83 at night.
The middle price has been lowered for two consecutive days, and it has gone out of the trough for more than a year.
On Tuesday, the central parity rate of the RMB against the US dollar was raised by 82 points to 6.843 1, which stopped the decline. On Monday, the central parity rate of RMB was reported at 6.85 13, down 19 1 point, the lowest since last Friday, and fell by 380 points last Friday.
After the central parity was fixed, both onshore and offshore RMB fell by nearly 100 points at the beginning, falling below 6.86 and 6.87 respectively. An hour later, both of them rose again, and both low positions rebounded by more than 150 points, and then continued their upward trend.
In July, China's foreign reserves rose continuously, and the onshore RMB closed up for two consecutive days.
Before the news of Sina Central Bank came out, the official closing price of onshore RMB against the US dollar was reported at 6.8340 on Tuesday, which was 80 points higher than the official closing price of the previous day and 190 points higher than the closing price of the previous day. This is the second consecutive day that the onshore RMB exchange rate against the US dollar closed up.
Before the onshore closing on Tuesday afternoon, the latest foreign exchange reserve scale data released by Bank of China showed that the foreign exchange reserve balance of China in July was $311795 million, an increase of $581700 million from the previous month, with an increase of 0. 18%, rising for two consecutive months. Safe said that in July, China's cross-border capital flows were generally stable, the supply and demand in the foreign exchange market were basically balanced, and the scale of foreign reserves grew steadily.
Reuters's report quoted traders as saying that the newly released data of foreign reserves in July increased slightly, which increased the market's confidence in the RMB. Traders believe that after nearly two months of continuous adjustment of the RMB exchange rate, the regulatory authorities only offered one measure, which shows that the attitude of the regulatory authorities is still very calm. If the subsequent exchange rate performance continues to be irrational, it may encounter more measures to maintain stability; However, supervision does not mean that the exchange rate must be stable at a certain point, nor does it mean that the exchange rate will turn around. External risks such as a strong US dollar in the future and a Sino-US trade war still exist, and it is expected that the RMB exchange rate will remain under pressure.
It is mentioned on Wall Street that after the central bank announced an increase in the foreign exchange risk reserve ratio last Friday, Xie Feng, a researcher at the Institute of International Finance of the Bank of China, believed that the recent rapid depreciation of the RMB exchange rate was the reason for the central bank's policy, and this adjustment released the signal of stabilizing the exchange rate. Maintaining the basic stability of RMB exchange rate at a reasonable and balanced level is still the goal of exchange rate policy, and the central bank is fully capable of achieving this goal. "If the procyclical behavior of the foreign exchange market continues, more management measures may be introduced."