On December 20, the central parity rate of the RMB against the US dollar was 6.9861, depreciating by 115 basis points. The previous trading day’s average price was 6.9746, the closing price of onshore RMB was 6.9747 at 16:30 and 6.9818 at 23:30.
The US dollar index was up slightly on the 19th. The US dollar index, which measures the US dollar against six major currencies, rose 0.03% on the day and closed at 104.7320 at the close of the foreign exchange market.
The People’s Bank of China has authorized the National Interbank Funding Center to announce that the loan market quotation rate (LPR) as of December 20, 2022 is: 1-year LPR is 3.65% (last time it was 3 .65%) and the 5-year LPR rate is 4.3% (4.3% last time).
The central bank carried out 5 billion yuan 5 billion yuan and 141 billion yuan 14-day 7-day reverse repurchase agreements in the open market, and the winning bid rates were 2.0% and 2.15%, respectively. According to Wind data, 2 billion yuan of reverse repurchases have expired today.
Zhou Maohua, a macro researcher at the financial markets department of China Everbright Bank, pointed out that the RMB exchange rate fluctuations are mainly disturbed by the US dollar and market expectations about the prospects for economic recovery. The December Fed meeting was aggressive, but the rate hike is coming to an end and the pace of rate hikes has slowed. The market is cautious on US dollar performance. At the same time, my country’s economy continued to recover, and the market became more optimistic about the prospect of economic recovery, which caused the RMB exchange rate to fluctuate bidirectionally.
