The Central Parity Of RMB Continued Downward For Three Consecutive Days, And The Wave Of "Asymmetric Depreciation" Continued.

When the US dollar strengthened, the RMB depreciated against the US dollar.

At this point, the central bank followed the market supply and demand (the closing price of the day before yesterday) to reduce the exchange rate of RMB against the US dollar.

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However, the downward adjustment will refer to the fluctuation of a basket of currencies (a little more moderate), so as to maintain the basic stability of the CFETS RMB exchange rate index.

When the dollar weakens, the renminbi appreciates against the US dollar.

However, the central bank may not expect the RMB to appreciate too much against the US dollar. At the same time, it hopes that the effective exchange rate of the RMB can be depreciated moderately, so as to facilitate the improvement of terms of trade.

Therefore, on the basis of reflecting market supply and demand, the central bank controls the increase in the central parity of RMB against the US dollar (less or less), making the RMB appreciate moderately against the US dollar and devalue a basket of currencies at the same time.

This "strategic depreciation" mode has also implemented the commitment of President Ogawa: even if we push forward the RMB.

It will also pay more attention to timing, do not cause too much spillover effect, and do not cause too much criticism.

Today, the central parity of RMB against the US dollar reported 6.5202 yuan, down 74 points, and continued to refresh its lowest level since March 28th.

This is the third consecutive day of central bank regulation.

The median price was sharply reduced by 185 points and 378 points on the previous two days.

In fact, the Central Bank of China did the same.

Wall Street knowledge once mentioned yesterday that the yuan has maintained a good time in the background of weakening US dollar, maintaining stability against the US dollar and devaluing a basket of currencies.

Meanwhile, the US dollar has strengthened for three consecutive days.

The US dollar index rebounded from 91.89 to 93.76, or over 2%.

The Central Bank of China is adopting a new model of "asymmetric depreciation", the analysis said.

According to Peng Bo, Zhang Ming, director of the International Investment Office of the world economic institute of the Chinese Academy of Social Sciences, the Central Bank of China is not willing to appreciate the RMB against the US dollar significantly, because the RMB exchange rate may be overestimated to the US dollar.

The endogenous driving force of China's exports is still insufficient, and it still faces a large short-term capital outflow driven by the depreciation of the RMB against the US dollar.

He expects that the central bank may continue to adopt this new asymmetric depreciation mode in the short term: when the US dollar index is stronger, the renminbi will choose to watch the CFETS basket and let the RMB depreciate against the US dollar. When the US dollar index weakens, the renminbi will choose to basically peg the US dollar (or slightly rise to the US dollar) and let the renminbi depreciate against the CFETS basket.