The central price of RMB was adjusted by 302 basis points

category:Finance
 The central price of RMB was adjusted by 302 basis points


On November 19, the Bank of China released the cross-border RMB index (CRI) for the third quarter of 2020. The CRI index in the third quarter was 316, up 1 point from the second quarter.

In the third quarter, some European and American economies were plagued by the rebound of the epidemic, and the recovery momentum of Chinas economy became more obvious. The RMB appreciated against the US dollar, the trend of increasing foreign holdings of RMB financial assets increased, and the activity of cross-border use of RMB continued to increase.

Cross border use of RMB under trade in goods remained active. In the first three quarters of 2020, Chinas total value of imports and exports of goods increased by 0.67% year-on-year, of which the third quarter achieved a year-on-year growth of 7.52%, indicating that Chinas foreign trade import and export has recovered. Under trade in goods, the scale of cross-border use of RMB continued to expand. In the third quarter, the scale of settlement and use exceeded 1.2 trillion yuan, an increase of 14.2% year-on-year. Cheng Shi, chief economist of ICBC international, believes that the force to maintain the stability of RMB value will continue in the next year: first, Chinas economic growth rate is leading in the world; second, the attractiveness of RMB assets to global funds is still increasing; third, global monetary policy is easy to loosen but difficult to tighten, and Chinas interest rate is still relatively high. These factors will support the RMB exchange rate. The central price of RMB has been lowered by 302 basis points_ NB12679

Cross border use of RMB under trade in goods remained active. In the first three quarters of 2020, Chinas total value of imports and exports of goods increased by 0.67% year-on-year, of which the third quarter achieved a year-on-year growth of 7.52%, indicating that Chinas foreign trade import and export has recovered. Under trade in goods, the scale of cross-border use of RMB continued to expand. In the third quarter, the scale of settlement and use exceeded 1.2 trillion yuan, an increase of 14.2% year-on-year.

Cheng Shi, chief economist of ICBC international, believes that the force to maintain the stability of RMB value will continue in the next year: first, Chinas economic growth rate is leading in the world; second, the attractiveness of RMB assets to global funds is still increasing; third, global monetary policy is easy to loosen but difficult to tighten, and Chinas interest rate is still relatively high. These factors will support the RMB exchange rate.