Financial News on April 26th, the central price of RMB against the US dollar today was 6.5590 yuan, down 681 basis points from 6.4909 yuan on the previous trading day (April 25). The mid-price depreciated to its lowest since April 2, 2021, with the largest decline since August 13, 2015.
At around 19:00 on April 25, the official website of People's Bank of China issued an announcement stating that in order to improve the ability of financial institutions to use foreign exchange funds, People's Bank of China decided to lower the reserve ratio of foreign exchange deposits from May 15, 2022, that is, the reserve ratio of foreign exchange deposits is lowered from the current 9% to 8%.
The news that the People's Bank of China lowered the foreign exchange reserve ratio of financial institutions has just come to an end. The RMB has rebounded rapidly against the US dollar. Among them, the onshore RMB has risen sharply against the US dollar, quickly recovering the three barriers of 6.57, 6.56 and 6.55.
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html experts said that at this stage, the policy side is preventing the " herd effect " brought about by the market's unilateral betting behavior, causing a sharp decline in the exchange rate , deviating from the fundamentals . Mingming, co-chief economist of CITIC Securities , said that lowering the foreign exchange reserve ratio will help increase the foreign exchange supply in the market, calm down the fluctuations in the foreign exchange market, and play a role in stabilizing market expectations and RMB exchange rate .Wang Youxin, a senior researcher at the China Banking Institute, said that when there are major changes in exchange rate prices and market sentiment, making adjustments can play a good role in countercyclical role, improve the foreign exchange supply and demand situation, release policy signals, and play a role in stabilizing exchange rate and market sentiment.
