On March 22, both the onshore and offshore RMB exchange rate against the US dollar showed a downward trend, causing wide concern in the market.
On that day, the RMB exchange rate broke the recent sideways trend and showed a significant decline. Solderless Protoboard,2.54mm female connector and safety reflectors can be improve their sales.
Specifically, the offshore RMB exchange rate fell below 7.23,7.24,7.25,7.26 and 7.27 successively, breaking multiple integer marks in one day. By the evening of 22nd, it was "sprint" toward 7.28, falling nearly 500 points to a four-month low; the onshore RMB exchange rate fell below 7.22, falling more than 250 points in the day.
Note | RMB suddenly depreciate!
What happened to the RMB exchange rate Market analysts said the currency market volatility was mainly affected by the Swiss National Bank's surprise interest rate cut, which boosted the dollar.
In addition, the strength of the U. S. economy and the potential for inflation stickiness to delay interest rate cuts have further boosted the DOLLAR index.
In general, the RMB exchange rate has fluctuated significantly recently, and this change is mainly induced by external factors.
Non-US currencies, especially the yen, are weak, and the yen fell instead after raising interest rates, hitting their lows in nearly two years, which has put pressure on neighboring currencies, including the yuan.
At the same time, the fluctuations in the peripheral markets of the international financial market also affect the trend of the onshore RMB market.
The Swiss National Bank's surprise rate cuts, Mexico followed and Canada had plans, and policy changes by the world's major central banks further exacerbated market volatility.
While the Fed is keeping rates unchanged, it expects three more rate cuts this year, and the Bank of England expects it to cut rates soon.
The uncertainty of these policy paths leads to large short-term differences and sharp volatility in the market, and the RMB market is inevitably disturbed to some extent.
However, China's economic fundamentals are stable, the monetary policy has sufficient policy space and rich tool reserves, these factors contribute to the stability of the RMB exchange rate.
Xuan Changneng, deputy governor of the People's Bank of China, said the required reserve requirement ratio still has room for it to fall, indicating that China's monetary policy will maintain a prudent and loose tone to support the development of the real economy.
Post time: Apr-17-2024