RMB Central Bank launched RMB 10 billion reverse repurchase operation

category:Finance
 RMB Central Bank launched RMB 10 billion reverse repurchase operation


Recently, the central bank issued the third quarter of 2020 monetary policy implementation report, focusing on enhanced flexibility, stable market expectations, which means that the central bank will continue to let the exchange rate play the role of stabilizer and maintain exchange rate flexibility. For the next development, the central bank pointed out that the reform of RMB exchange rate formation mechanism will continue to adhere to the decisive role of the market in the formation of RMB exchange rate and optimize the allocation of financial resources.

To be specific, firstly, we should adhere to the managed floating exchange rate system based on market supply and demand and refer to a basket of currencies; secondly, we should continue to enhance the flexibility of RMB exchange rate and give better play to the role of exchange rate in regulating macro-economy and the automatic stabilizer of balance of payments; thirdly, we should strengthen the management of foreign exchange market; fourthly, we should balance the internal and external balance. Li Liuyang, an analyst with China Merchants Bank, believes that the US dollar has further reached its early low point recently, but the RMB exchange rate has gone out of the form of horizontal consolidation, which shows that the long positions of RMB have entered the state of repair after continuous high. Li Liu Yang predicted that after entering December, the European Central Bank and the Federal Reserve will hold interest rate meetings respectively, and the loose tone may further suppress low interest rate currencies and push up high interest rate currencies, and the RMB exchange rate may continue to rise. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

To be specific, firstly, we should adhere to the managed floating exchange rate system based on market supply and demand and refer to a basket of currencies; secondly, we should continue to enhance the flexibility of RMB exchange rate and give better play to the role of exchange rate in regulating macro-economy and the automatic stabilizer of balance of payments; thirdly, we should strengthen the management of foreign exchange market; fourthly, we should balance the internal and external balance.

Li Liuyang, an analyst with China Merchants Bank, believes that the US dollar has further reached its early low point recently, but the RMB exchange rate has gone out of the form of horizontal consolidation, which shows that the long positions of RMB have entered the state of repair after continuous high. Li Liu Yang predicted that after entering December, the European Central Bank and the Federal Reserve will hold interest rate meetings respectively, and the loose tone may further suppress low interest rate currencies and push up high interest rate currencies, and the RMB exchange rate may continue to rise.