The Euro Incident Has Brought Some Pressure On The RMB Exchange Rate.

This week, the RMB exchange rate against the dollar once again experienced a substantial adjustment, once below the 6.69 pass.

However, with the easing of the recent decline in the pound and the euro, the RMB exchange rate has shown signs of stability since 7.

Most experts believe that Britain's impact on the foreign exchange market may be over.

July 6th is undoubtedly the most notable trading day this week.

The central parity of RMB against the US dollar has dropped by 263 basis points, breaking 6.68.

After opening, the spot exchange rate of RMB against the US dollar fell sharply, which hit a new low of 5 years and ended at 6.6900 lows.

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The balance of money and the strong influence of the US dollar are also the main reasons for the low exchange rate of RMB.

Looking at the situation from the disk and foreign exchange traders, the US dollar buying in the recent market has continued to be strong. Although foreign exchange settlement has increased a lot, the demand for foreign exchange purchase remains at a relatively high level.

On the evening of 6, a commentator from the China foreign exchange trading center, which was posted on the website of the people's Bank of China, also said that the depreciation of the RMB in the first half of the year was mainly due to the demand for foreign exchange market.

On the one hand, Chinese enterprises need more foreign exchange to repay foreign debts and "go out"; on the other hand, some overseas speculative forces and leverage are short, including RMB.

It has also brought some pressure to the RMB exchange rate.

The article clearly states that "the current inflation rate in China is higher than that in the United States, and the effective exchange rate of RMB is under the pressure of appreciation.

In order to maintain the relative stability of the RMB effective exchange rate, the nominal effective exchange rate of RMB has a certain devaluation requirement.

Lian Ping, chief economist at Bank of communications, said

Under the influence of fluctuation, market risk aversion and capital outflow, the exchange rate of RMB against the US dollar still faces devaluation pressure, but the extent of depreciation is basically controllable.

"With the two-way fluctuation of the RMB exchange rate gradually accepted by the market, under the circumstances that the central bank reasonably guides market expectations and the overall economic trend is stable, in the future, the two-way floating characteristics of the RMB exchange rate will become more obvious, and exchange rate flexibility will further enhance."

Lian Ping said.

Senior foreign exchange analyst Han Hui Shi believes that the stability of the real effective exchange rate generally means the stability of trade competitiveness.

Last week, the central bank made a clear statement that China did not intend to enhance its competitiveness through devaluation of the RMB exchange rate.

In addition, China's inflation level will not always be higher than that of the United States, and the focus of exchange rate policy will also be adjusted accordingly.

The fundamentals of China's economy determine that there is no foundation for long-term depreciation of the renminbi.

From 7 days, positive factors of favorable RMB appeared in the market.

The balance of foreign exchange reserves announced by the central bank increased by US $13 billion 400 million, indicating that cross-border capital outflow is better than market expectations.

In the international market, the pound and the euro began to stop, the yen also stabilized, and the central parity of RMB increased slightly for two consecutive days.