RMB Against The U.S. Dollar Bottom Friday Rebound, Short-Term Trend Is Still Strong.

The RMB against the US dollar moved lower and higher on Friday (August 29th), while the middle price declined slightly.

The net settlement on the disk is more obvious, traders said that the end of the month buying foreign exchange may have ended, and the short-term RMB trend may be strong.

The US dollar / RMB inquiry system was reported at 6.1439 noon and 6.1446 on Thursday.

The central parity of US dollar / RMB central bank was 6.1647, and Thursday's middle price was 6.1638.

In the overseas non deliverable forward foreign exchange (NDF) market, the US dollar / Renminbi one year variety is newly reported at 6.2250/90, ending on Thursday at 6.2270.

The latest offshore dollar / RMB spot report in Hongkong was 6.1479/99, and the last trading day was 6.1495.

Traders say that from the market, the impulse of customers to do more dollars is limited.

"The middle price is basically stable at present, and the central bank will remain tolerant and not easily intervene in the market price deviating from the 400-500 point".

Traders also pointed out that if exports continue to be strong, demand for foreign exchange will be more serious.

There is a market view that the renminbi will rise to $6.11 against the US dollar at the end of the year to $1.

The market will see the supply and demand and the middle price. If the intermediate price increases, then the exchange rate does not exclude the possibility of returning to 6.05.

On Tuesday (August 26th), another RMB clearing bank was officially unveiled in Frankfurt, the European Financial City, to become a new milestone in the internationalization of RMB.

Analysts point out that in the long run,

Internationalization and gradually developing into reserve currencies are irresistible.

Xie Taifeng, Dean of the school of finance, Capital University of Economics and Business, said: "on the one hand, the trend of China's economic fundamentals has been unchanged for a long time. Positive factors such as mode of pfer, structural adjustment, and the release of reform dividends have injected persistent momentum into improving the quality of economic development. On the other hand, the value of the renminbi has been relatively stable compared with other major currencies in the world, and it can be said that there has been a steady increase in the value of RMB, which has provided a strong power for the central banks to have a strong reserve value.

Experts believe that

Compared with the developed countries, the Chinese economy still needs to solve the basic problems of low per capita GDP, low end capacity and insufficient innovation capability. There is still a long way to go for the RMB to replace the US dollar.

international

On the other hand, the yen, which has benefited from the risk aversion, remains strong on Friday, and the euro may weaken for two consecutive months as tensions between Ukraine and Russia have intensified again.