Original title: more than 60 countries and regions included RMB in foreign exchange reserves
As the US dollar index hit a new low, the RMB rose sharply against the US dollar yesterday. On the 10th, the central parity rate of RMB released by China foreign exchange trading center was 6.8160, up 366 points from the previous trading day, a new high in four and a half months.
Spot exchange rate of RMB
Yesterday's closing quotation was 6.7825
At 16:30 yesterday, the official closing price of the onshore RMB spot exchange rate was 6.7825, up 505 points from the previous trading day, a new high since July 26, 2018, and the highest intraday rise was 6.7728; The offshore RMB exchange rate against the US dollar also broke through the 6.78 mark.
The minutes of the Fed's December interest rate meeting released early Thursday morning showed that Fed officials attending the meeting believed that the recent financial market fluctuations and increased concerns about global economic growth made the intensity and timing of the Fed's further tightening of monetary policy more uncertain than before, and the Fed will remain patient. A few officials attending the meeting believed that the US economy lacked inflationary pressure and opposed further interest rate hikes. The moderate tone of the Federal Reserve put the US dollar at a disadvantage. After the minutes of the December meeting were released, the US dollar index resumed its decline, hitting 95.099, breaking the nearly 12 week low.
Fxtm Futuo China market analyst Liu Min believes that the US dollar / RMB broke the 6.8000 mark yesterday and once broke the previous important low (the low on August 28) of 6.78401. From the general trend, as the US dollar / RMB has broken the 120 day moving average, it may indicate that the currency pair has started a downward trend.
More than 60 countries and regions
Incorporate RMB into foreign exchange reserves
In addition to the decline of the US dollar index, China US economic and trade consultations have also brought favorable factors to the appreciation of the RMB.
Some traders said that although China's economy is facing downward pressure and the internal environment does not support the sharp rise of the RMB, the continued weakness of the US dollar index and the resonance of the progress of China US economic and trade negotiations provide a good external environment for diluting the expectation of RMB depreciation. The pressure of short-term RMB devaluation has basically subsided, and there are even expectations of appreciation.
The regular meeting of the central bank's monetary policy committee in the fourth quarter of 2018 recently stressed to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level and maintain a balance between interest rate, exchange rate and balance of payments. Therefore, people in the industry generally believe that the current RMB exchange rate is still "stable".
It is worth noting that RMB is becoming more and more popular in the international market. Bank of England Governor Carney said at an online discussion yesterday that the Bank of England will have reserve currencies other than the US dollar in the future, such as China's RMB. Not long ago, the two major economies of Germany and France announced that they would include RMB into their foreign exchange reserves. At present, more than 60 countries and regions have incorporated RMB into foreign exchange reserves. A few years ago, this figure was almost zero. As of June last year, the ranking of RMB in global usage has risen from sixth to fifth, which is enough to illustrate the popularity of RMB in the international market, and the internationalization of RMB has become a general trend.