G20 Summit Convened &Nbsp; RMB Exchange Rate Changed Yesterday To The Biggest Increase In A Single Day.

Until yesterday (November 9th) closing,

It was held in Seoul on Thursday.

In this regard, there are large foreign exchange traders said that the G20 summit is approaching, the international community has increased unabated pressure on the RMB exchange rate, and the recent two-way fluctuations in the exchange rate have increased significantly, so we need to pay close attention to the trend of the middle price.

RMB intraday wave of new high

The central bank authorized the foreign exchange trading center to announce that the central parity of the RMB against the US dollar increased by 112 basis points from 6.6580 to 6.6692 in the previous day. The single day increase and intraday volatility all set a new high since 2005.

In the inquiry trading system, the final trading price of the RMB against the US dollar was reported at 6.6440, a 341 basis point appreciation over the previous closing price of 6.6781, an appreciation of 0.51%, setting the largest single day increase since 2005.

Yesterday, the range of shocks ranged from 6.6420 to 6.6912, with a wave of up to 492 points, which also hit the highest level since 2005, indicating that the trend of two-way fluctuation of RMB has intensified.

Since the central bank announced the reform in June 19th this year, the RMB has appreciated 2.3% against the US dollar, and the intermediate price has increased by 2.5%.

China's State Administration of foreign exchange said yesterday that in order to guard against the financial risks arising from cross-border capital flows, banks will manage the balance of the positions calculated by the banks in accordance with the principle of receipts and payments. The ratio of processing and receiving foreign exchange will be adjusted from 30% to 20%, indicating that under the pressure of hot money inflow, the safe is implementing strict foreign exchange control measures.

Traders at a bank in East China said that the lower limit of the position of foreign exchange management and sale of foreign exchange has made the renminbi fluctuate violently against the US dollar, and the trading market is relatively light, showing a strong wait-and-see sentiment.

Currency issue is the main topic of G20

It is reported that tomorrow's G20 summit will discuss the commitment made by countries last month to avoid currency "competitive depreciation".

The draft of the Seoul declaration prepared by South Korea has reconfirmed the decision of the G20 governor of Qingzhou and the governor of the Central Bank of the "market determined exchange rate". It also added the "freeze trade protection measures" put forward by the president of South Korea, Lee Myung-bak, to solve the problem of unbalanced development of the global economy.

Regarding the exchange rate issue, tengtai, chief economist and vice president of Minsheng securities, told the daily economic news that the US dollar almost reached its lowest point, and the rebound signal was strong.

Yang Qingli, managing director of the International Bank of Hong Kong, believes that if the US dollar wants to be strong, it will depend on the overall recovery of the whole European economy to recover the lost territory.

As the market worries about European sovereign debt problems lingers, investors are getting more risk averse. In addition, China's measures to curb hot money inflows also raise risk sentiment, and the overall tone of the dollar bearish remains unchanged.

On Monday (November 8th), World Bank President Zoelick suggested that G20 members should cooperate in balancing demand and stimulating growth. They should consider re implementing the improved global gold standard system, taking gold as a global reference point for inflation and deflation, and providing guidelines for exchange rate fluctuations.

Unlike previous gold standard linked to the US dollar, Zoellick proposed linking gold prices to a basket of currencies, possibly involving dollars, euros, yen, sterling and Renminbi.