The central bank distributes calming pills! The onshore and offshore RMB has risen by over 300 points against the US dollar | RMB | offshore
After the People's Bank of China shouted in its latest monetary policy implementation report that it has confidence, conditions, and ability to maintain the stable operation of the foreign exchange market, the exchange rate of the renminbi against the US dollar has risen in both onshore and offshore markets.
On August 17, the People's Bank of China released the "2023 Q2 China Monetary Policy Implementation Report". In a column titled "The Renminbi Exchange Rate Remains Basically Stable at a Reasonable Equilibrium Level," the central bank stated that currently, whether viewed from external or internal factors, the Renminbi exchange rate will not depreciate unilaterally, but will maintain two-way fluctuations. Overall, the current RMB exchange rate has not deviated from the fundamentals, and the operation of the foreign exchange market is generally orderly.
The central bank also stated that in the past few years, the exchange rate of the Chinese yuan against the US dollar has broken 7 three times and returned to below 7 three times. In the process of dealing with multiple rounds of external shocks, the People's Bank of China and the State Administration of Foreign Exchange have accumulated rich experience and sufficient reserves of policy tools, with confidence, conditions, and ability to maintain the stable operation of the foreign exchange market.
![The central bank distributes calming pills! The onshore and offshore RMB has risen by over 300 points against the US dollar | RMB | offshore](https://a5qu.com/upload/images/1af6a27b21b9a934ead7c61b93c83714.jpg)
After the release of the above report, the market immediately reacted, and the onshore and offshore RMB rose sharply against the US dollar.
The offshore RMB/USD exchange rate has successively recovered from the 7.34, 7.33, 7.32, and 7.31 levels, recovering all the declines within the day and appreciating by more than 300 points compared to the previous trading day.
The spot exchange rate of the Chinese yuan against the US dollar also rose, and the spot exchange rate of the Chinese yuan against the US dollar, which entered the night trading hours, successively recovered from the 7.317.30, 7.29, and 7.28 levels, recovering all the losses during the day trading hours and rising by over a hundred points at one point compared to the previous day.
![The central bank distributes calming pills! The onshore and offshore RMB has risen by over 300 points against the US dollar | RMB | offshore](https://a5qu.com/upload/images/aac5169b449d0a66a2f5e57f56a10123.jpg)
The central bank stated that the exchange rate of the Chinese yuan reflects the comparative relationship between the yuan and other currencies, and is influenced by various internal and external factors, resulting in high short-term uncertainty and uncertainty. However, in the long run, it fundamentally depends on economic fundamentals.
"In the next stage, the People's Bank of China and the State Administration of Foreign Exchange will resolutely implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, with the goal of maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level. They will leverage the advantages of a floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustment and management, comprehensively implement policies and stabilize expectations, make good use of various reserve control tools, regulate the supply and demand of the foreign exchange market, correct market procyclical and unilateral behavior, and resolutely prevent the risk of exchange rate overshoot.".