Offshore RMB exchange rate recovers from the “7” mark

International Business News – In early trading on the 5th, offshore RMB rose strongly above the 7.00 mark against the dollar for the first time in September, rising 450 points during the day to a high of 6.9665.

As of press time, the offshore RMB was at 6.9746, up more than 3,500 basis points in a month’s time from the stage high.

On Dec. 5, the RMB/USD mid-price was at 7.0384, up 158 basis points. The previous trading day’s mid-price was 7.0542, the onshore RMB closed at 7.0380 at 16:30, and closed at 7.0500 at 23:30 overnight.

Earlier, the Central Bank released the “Report on the Implementation of China’s Monetary Policy in the Third Quarter of 2022”, which showed that in the next phase, the RMB exchange rate continues to maintain a solid foundation for basic stability at a reasonable equilibrium level, with two major supporting factors of fundamentals and policy.

Looking back at November, Choice data shows that in November, the onshore RMB rose 3.1% against the US dollar and the offshore RMB appreciated nearly 4% against the US dollar during the month. The RMB exchange rate rose more than 1,000 points several times during the month. The last two trading days of November, RMB performance is particularly bright, onshore and offshore RMB exchange rate at the end of the two trading days of the month combined to pull up nearly 1500 points, more than 2000 points.

For the future trend of RMB exchange rate, Lian Ping, chief economist and president of the Institute of Plantation Investment, said that the RMB exchange rate against the US dollar is likely to fluctuate around 7.0.

Guan Tao, global chief economist at BOC Securities, believes that China’s independent and autonomous monetary policy has played an important role in keeping our exchange rate and economy running relatively stable in the current round of dollar strength.