Exchange rate of RMB against the U.S. dollar to rebound in market uncertainty

Xinhua Beijing on August 21 call out of a slump following the trend last week after the rebound this week, the yuan-dollar exchange rate as the main tone. Central parity of RMB against the U.S. dollar continued a half months on Monday after low and gradually move up, once again return to 6.78 range.

Stronger dollar by the international influence of the central parity of RMB against the U.S. dollar hit last week reiterated that the reform on its biggest weekly decline since, falling as much as 350 basis points week, fell to 6.80 range. This week, the U.S. dollar correction, the RMB against the U.S. dollar rebound has also shown the trend. To the China Foreign Exchange Trading Center announced central parity of RMB against the U.S. dollar for the design, the five trading days this week, three days up, two days down, plus or minus 180 basis points. Monday, the central parity of RMB against the U.S. dollar extended losses last week, reaching 6.8064, continued a half months, the lowest since. Daily after the rebound, one after another rose to 6.7979 on Tuesday, Wednesday rose to 6.7895. Followed by three basis points on Thursday after a slight decline, rose to 6.7884 on Friday.

U.S. economic data released this week after lackluster performance continued. Market analysts believe that the recent European and American good times and bad economic data, the market can not find a little direction, investors in the hedge and the economy will "double dip" between the expected swing, the dollar is not yet clear to the short term, nor do stronger than expected appreciation of the yuan.

Forward market, the yuan against the U.S. dollar is expected to remain stable. 20 evening, to measure the expectations of RMB appreciation in overseas markets overseas market, the dollar non-deliverable one-year newspaper 6.6718 yuan, compared with spot closing price of 6.7902, an indication that after one year at a rate of 1% appreciation of the RMB to 2% range, still more rational.

19 June, the PBOC announced to further promote the reform of RMB exchange rate formation mechanism since the small appreciation is obvious characteristics of two-way floating exchange rate flexibility was enhanced. The latest BIS data, in July the real effective exchange rate of RMB chain drop nearly 1%. Analysts pointed out that this was mainly due to the month the euro, yen and other currencies against the dollar rebounded, and the indicators of inflation in China relative to the major trading currency countries still maintain a high level.


This week, the central parity of RMB exchange rate against the euro, the central parity of RMB against the British pound showed a slightly rocky. Bank of China (601,988, stock it) market analysts pointed out that the slowdown in U.S. economic recovery can not stay out of other countries, the recent euro zone and Britain are good news continued, investors looking for dollars in alternative assets and hedge Dong Li to seek consensus between, creating the euro and sterling recent trend of repeated shocks.

U.S. Treasury data released this week showed that as at the end of 2010, 6, China held 843.7 billion U.S. dollars were U.S. Treasury bonds, following the holdings of 32.5 billion U.S. dollars in May after the U.S. Treasury, in June re-reduction of 24 billion U.S. dollars U.S. Treasury bonds, but remained the largest overseas holder of U.S. Treasury bonds. At the same time, China holds to a net increase of Fannie Mae, Freddie Mac, the main U.S. agency debt bonds, and in the first half of the holdings of government bonds in Japan and Korea.

Analysts think this shows that China's foreign exchange reserves have been more seriously the benefits of foreign investment. China's State Administration of Foreign Exchange had hot issue in answer to foreign policy, also said foreign exchange reserves held by the U.S. Treasury market, the investment is an act of increasing or decreasing its investment in U.S. Treasury bonds are normal operation. China's foreign exchange reserves for long-term, diversified investments in different assets in the shift, dynamic complementary effect, can effectively control the overall risk of assets to meet liquidity needs, achieve stability and overall value. And stressed that the "two rooms" new financing bonds were not "two rooms" negative impact on stock delisting. Overall, the "two rooms" new issue bonds subscribed in good condition, active secondary market, liquidity adequate.