On December 27, the central parity rate of the RMB against the US dollar was quoted at 6.9546, an increase of 279 basis points. The previous trading day’s average price was quoted at 6.9825, the closing price of onshore RMB was quoted at 6.9587 at 16:30 and 6.9634 at 23:30.
The central bank carried out reverse repurchase operations of 194 billion yuan 7-day and 14 billion yuan 14-day in the open market, and the winning bid rates were 2.0% and 2.15%, respectively. Wind data shows that 5 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 two-way. As the end of the year approaches, strong demand for traditional foreign currency purchases may disrupt the RMB exchange rate, but with support from the above factors, the RMB is expected to maintain a stable trend.
