Foreign Exchange Accounted For A 8 Month Low In April. Foreign Exchange Reform Succeeded In Sniping Hot Money.

< p > "in April, foreign exchange accounted for more than 100 billion yuan in financial institutions, within market expectations.

From the trend of gradual decrease in foreign exchange holdings, foreign exchange reform has restrained the influx of hot money to a certain extent, and the market clearing capacity has been enhanced.

A dealer in a state-owned commercial bank said that the efficiency of foreign exchange reform needs to be analyzed in combination with the data of foreign exchange, foreign exchange, and cross-border RMB payment.

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(P) the RMB credit receipts and payments table of financial institutions updated by the central bank yesterday night (classified by departments) showed that the balance of foreign exchange held by financial institutions was 29 trillion and 502 billion 113 million yuan at the end of 4, an increase of 116 billion 920 million yuan from the end of last month, indicating that offshore capital continued to flow into the country.

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< p > this is the increase in foreign exchange reserves in financial institutions for ninth consecutive months, but the scale is 8 months low.

In March, foreign exchange accounted for 189 billion 197 million yuan in financial institutions.

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< p > since March 17, 2014, the central bank has extended the RMB to us dollar < a href= "//www.sjfzxm.com/news/index_c.asp" > trading price < /a > floating rate in the inter-bank spot foreign exchange market from 1% to 2%.

A spokesman for the central bank said that the RMB exchange rate does not exist on the basis of a substantial appreciation, nor does it exist on the basis of a significant depreciation.

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< p > in the future, we will enhance the two-way floating elasticity of RMB exchange rate and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level in accordance with the market development situation and the economic and financial situation of < a href= "//www.sjfzxm.com/news/index_c.asp" > foreign exchange < /a >.

The move is seen by the market as a counterattack to the renminbi appreciation of international hot money.

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< p > the traders of the above state-owned commercial banks said that although the April a href= "//www.sjfzxm.com/news/index_c.asp" > financial institutions < /a > new foreign exchange accounted for a new low in eight months, but in the same month, when the RMB exchange rate against the US dollar had weakened by 0.66%, the financial institutions were still buying foreign exchange, indicating that offshore funds were still appreciating the appreciation of the renminbi.

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< p > foreign exchange financing of financial institutions includes foreign exchange bought and sold by commercial banks and other financial institutions, but mainly reflects the foreign exchange traded by the central bank.

Most analysts believe that this data reflects the inflow and outflow of overseas capital, because most foreign exchange flows to China will be sold to the central bank.

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The RMB credit income and expenditure statement (classified by departments) of financial institutions updated by the central bank (P) also showed that the fiscal balance at the end of 4 was 3 trillion and 668 billion 443 million yuan, an increase of 562 billion 100 million yuan from the previous month.

Compared with the new scale of foreign exchange financing of financial institutions, the liquidity of the market in April therefore reduced by 445 billion 200 million yuan.

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< p > this week, the open market has put in a net profit of 44 billion yuan, and last week it was net return of 60 billion yuan.

And this week, the central bank suspended the operation of the 3 year central bank ticket renewal, instead of "flat and short length", reflecting the neutral and relaxed position of monetary policy under the background of steady growth.

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