Marketization And Benchmark Of The Middle Price Have Improved Significantly

The expected effect has been achieved by improving the RMB/US dollar central parity rate quotation mechanism. In the future, the central parity rate of RMB against US dollar will continue to follow the improved Quotation mechanism We will make adjustments, give more play to the role of the market exchange rate, further improve the marketization and benchmark of the central parity rate, and maintain the basic stability of the RMB exchange rate against a basket of currencies at a reasonable and balanced level.

In order to enhance the marketization and benchmark of the central parity rate, the People's Bank of China improved the central parity rate quotation mechanism of RMB against the US dollar on August 11, 2015. According to this mechanism, market makers, before the daily opening of the inter-bank foreign exchange market, refer to the closing exchange rate of the inter-bank foreign exchange market of the previous day, and comprehensively consider the supply and demand of foreign exchange and the changes in exchange rates of major international currencies, provide the central parity quotation to the China Foreign Exchange Trading Center.

From the operation of the past five months, the consistency between the central parity rate of the RMB against the US dollar and the closing exchange rate of the interbank foreign exchange market last day is very high. Since August 11, 2015, the difference between the central parity rate of the RMB against the US dollar and the closing exchange rate of the interbank foreign exchange market last day has remained within 50 basis points for most of the time, even only 1 basis point at the lowest point

　　。 From August 11, 2015 to the end of 2015, the average point difference between the two was 33 basis points, which was 874 basis points lower than the average point difference from the beginning of 2015 to August 10, 2015. The deviation between the central parity rate of the RMB against the US dollar and the market exchange rate has been effectively corrected, and the marketization and benchmark of the central parity rate have been significantly improved.

Since August 11, 2015, RMB The central parity rate against the US dollar has always been formed by market makers referring to the closing exchange rate of the interbank foreign exchange market last day, taking into account the supply and demand of the foreign exchange market and the trend of a basket of currencies. Recently, influenced by the market's expectation of another interest rate increase by the Federal Reserve in March, the dollar index strengthened again after a short adjustment. On January 6, 2016, it rose to the highest point since the first interest rate increase by the Federal Reserve, rising 0.6% this year.

In this context, the market maker's quotation of the central parity rate of RMB against the US dollar, based on the closing exchange rate of the previous day and the trend of a basket of currencies, tends to depreciate, which makes the final central parity rate appear to depreciate. It should be noted that the changes in the bilateral exchange rate of the RMB against the US dollar and the US dollar against other major currencies exchange rate The change direction and range of the RMB exchange rate against a basket of currencies remained basically stable.