if you are interested in it ,
Get free samples :sales@edabearings.com
In August, the exchange rate of RMB depreciated by 3.0% against US dollar and the index of RMB against CFETS currency basket depreciated by 2.4%. The main reason for the double depreciation of RMB in August was Trump's announcement of imposing tariffs on US$300 billion of China's exports. After the renminbi-dollar exchange rate broke 7, the central bank continued to use counter-cyclical factors to stabilize the exchange rate, which means that the central bank does not want the disorderly and continuous depreciation of the renminbi.
Since September, the exchange rate of RMB has changed from a sharp depreciation in August to a sustained appreciation. The onshore exchange rate of RMB against the US dollar once recovered the 7.10, 7.09 and 7.08 integer levels, and is currently hovering around 7.0882. Considering the following factors, we do not think that the RMB exchange rate will depreciate significantly in the short term.
First, in the current environment, the central bank does not intend to reverse the trend of RMB exchange rate devaluation through mid-price management, but it can effectively control the magnitude and rhythm of RMB exchange rate devaluation. By observing the closing price of RMB against US dollar and the opening price on the second day, we can find that when the closing price is higher than 7.10, the opening price on the second day is almost around 7.08, which means that the higher the closing price (the greater the devaluation of RMB), the stronger the central bank's willingness to stabilize the exchange rate through counter-cyclical factors. In fact, overseas traders are also paying more and more attention to the strength of the daily mid-price of RMB against the US dollar to judge the strength of the central bank's efforts to stabilize the exchange rate.
Secondly, China and the United States have released positive signals to each other, and there are signs of marginal easing of trade frictions. On the evening of September 11, President Trump said he would postpone tariff increases on $250 billion of Chinese imports to the United States from October 1 to 15. China has also responded positively to this. China supports relevant enterprises to purchase a certain amount of soybean, pork and other agricultural products from the United States in accordance with the principles of marketization and WTO rules from now on. The Tariff and Tax Commission of the State Council will levy tariffs on these purchases and exclude them.
In addition, according to the information released by the relevant leaders of China and the United States, both sides intend to concentrate on pushing forward this round of consultations. The sudden deterioration of Sino-US trade frictions from August to the current "goodwill expression" of the US side will help break the deadlock, which may also be the main reason for the recent appreciation of the RMB exchange rate.
Thirdly, China's monetary policy is relatively stable with global easing and coding. On Thursday, the European Central Bank cut deposit rates by 10 basis points to a record low of - 0.5%, pledged to keep them low for a long time, and said it would restart its 20 billion euro bond purchase program from November 1.
PREVIOUS:How to Disassemble and Install Motor Bearings NEXT:EU Business Organizations Warn Britain
