Forex Currency: RMB/USD Central Parity Plummeted

[amandalanlulei]

Forex Currency---- China Foreign Exchange Trading Center, authorized by People’s Bank of China (PBC), announced that on July 13th interbank forex market, RMB/USD forex rate central parity hit 6.7802, 84 basis points lower than the previous day, offsetting the total increase of 72 basis points during the past 4 trading days. Meanwhile, USD/RMB 1-year overseas NDF rebounded to 6.6620 yuan, better than the closing price of the previous day, at 6.6560 yuan.

A forex dealer said, yesterday, RMB central parity unexpectedly went low, RMB offer on inquiry market also dropped at close at 6.7720, 9 basis points lower than the previous day. At the same time, USD NDF highest intraday rebound hit 6.6650 yuan. According to the forex dealer, NDF market believes RMB will experience a slow appreciation in medium and long terms. Thus yesterday, RMB shrank its declining range. He held that the boosting USD buying was strong yesterday on forex market, which reflected the effects of Chinese trading surplus in market.--Forex Currency

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By Amanda