Original title: The central parity of the RMB against the US dollar depreciated by 171 basis points Institution: The US dollar index will remain weak Source: Sino-Singapore Jingwei
Sino-Singapore Jingwei Client, December 23, according to the China Foreign Exchange Trading Center, on the 23rd, the central parity of the RMB against the US dollar depreciated 171 basis points to 6.5558. The data shows that since December, the central parity of RMB against the US dollar has fluctuated continuously between 6.53-6.60.
On December 22, the onshore renminbi closed at 6.5429 against the U.S. dollar in overnight trading, up 72 basis points from the previous day and night; the U.S. dollar index rose. As of late New York trading, the U.S. dollar index, which measures the U.S. dollar against six major currencies, rose 0.68%. To 90.6500.
As of press time, the onshore renminbi was quoted at 6.5521 against the U.S. dollar, down 41 basis points during the day; the offshore renminbi was at 6.5428 against the U.S. dollar, down 28 basis points during the day; the dollar index was at 90.5424, down 0.1%.
In order to maintain stable liquidity at the end of the year, the central bank carried out reverse repurchase operations of 110 billion yuan, 130 billion yuan, and 110 billion yuan on December 21, 22, and 23, respectively, achieving net investment of 90 billion yuan, 120 billion yuan, and 100 billion yuan, with a cumulative net investment of 310 billion yuan in three days.
Wind data shows that 60 billion yuan of reverse repurchases expired in the central bank’s open market this week, of which 20 billion yuan, 10 billion yuan, 10 billion yuan, 10 billion yuan, and 10 billion yuan expired from Monday to Friday; (December 25) There is still 50 billion yuan of treasury cash deposit due.
The Oriental Jincheng report believes that in the short term, the US dollar center is still unlikely to have obvious upward momentum. Superimposed on the Fed minutes to discuss strengthening bond purchase guidelines as soon as possible, the continuation of the Fed’s easing policy in December will cause the US dollar index to remain weak. However, the dollar’s decline may tend to narrow in the future.
Guan Tao, global chief economist at Bank of China Securities, believes that there will still be more uncertainties in 2021, which are both positive and negative. In the face of dynamic changes in economic fundamentals, monetary policy should remain flexible and appropriate, and easing is still needed when it is easing. The RMB exchange rate in 2021 may not be as strong as imagined, and the volatility has increased. (Zhongxin Jingwei APP)
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