RMB exchange rate against the U.S. dollar breakthrough 6.80 hit a new high of 5 years

Beijing in June 22, 22 days is the people's Bank of China reiterated the second trading days after the exchange rate reform, the RMB exchange rate middle rate changed yesterday subdued situation, the dollar rose above the 6.80 mark, a record since 2005 July to remit to high.

The central bank announcement shows, June 22nd, the inter-bank foreign exchange market US dollar traded currencies against the RMB exchange rate for the middle price: $1 to 6.7980 yuan, 1 yuan 8.3816100 yen to euro to RMB 7.4740 yuan, HK $1 to RMB 0.87443, 1 pounds of 10.0372 yuan.

In June 21st, RMB exchange rate against the U.S. dollar 6.8275, unchanged from the previous trading day.

The central bank spokesman said 19 days, according to the domestic and international economic and financial situation and Chinese international balance of payments situation, the people's Bank of China decided to further advance the reform of the RMB exchange rate formation mechanism, enhance the flexibility of the RMB exchange rate.

The school of finance of Renmin University of China vice president Zhao Xijun said: "the middle 22 exchange rate changes is to further promote the reform of RMB exchange rate formation mechanism, the concrete embodiment of the reference to a basket of currencies regulation, the impact of future exchange rate will be more reflected in market supply and demand. "

Yesterday OTC market as of the close, the RMB against the U.S. dollar at 6.7976, hit a new high since the exchange reform in 2005, or nearly 5/1000 of the daily floating ceiling. The middle of the 22 day of the RMB exchange rate against the dollar price and 21 daily spot inquiry market price of similar, show that the rate of the RMB exchange rate more reflect market supply and demand to be implemented.

After the outbreak of the financial crisis, the RMB exchange rate mechanism was adopted by the essence of the peg to the dollar, US dollar exchange rate middle rate volatility significantly narrowed. Since this year, the renminbi exchange rate against the dollar price of the basic operation in the interval of 6.826 to 6.828 in the. The change of exchange rate in June 22nd showed that the flexibility of the RMB exchange rate was enhanced obviously.

China Financial Academy of Social Sciences Institute of economic China assessment center director Liu Yuhui said: "the short-term investor sentiment or will produce the pressure of appreciation of RMB exchange rate." This is from yesterday spot inquiry market and reflect the expected appreciation of RMB overseas NDFs (NDF) reflected in the market. "

The central bank spokesman pointed out recently, will continue to follow the published foreign exchange market exchange rate floating range of RMB exchange rate floating, dynamic management and regulation.

According to the existing provisions, the inter-bank spot foreign exchange market trading price of RMB against the US dollar on the floating range of 5/1000. The dynamic management in accordance with this interval, helps to avoid sharp fluctuations in the exchange rate of RMB and overshoot.

Zhao Xijun said: "speculation often have a short-term effect, in the long term, subject to market supply and demand uncertainty factors, exchange rate of RMB exchange rate is difficult to judge, the expected future will be even more embody the characteristics of two-way floating. "

In fact, from the spot market on the morning of 22, influenced by buying more dollars, Renminbi fell against the dollar spot quotation. Ten thirty, the inquiry system of RMB against the US dollar at 6.8126.

Experts believe that, since last year China constantly tend to balance international payments, and the current RMB exchange rate and the equilibrium level was little deviation does not exist, so the currency based volatility.