The central bank raised the CENTRAL parity rate by 172 points, and launched a 200-billion-yuan 14-day reverse repurchase program


On January 26, the central parity rate of RMB against the US dollar was 6.3246, up 172 basis points from the previous trading day.The central parity was at 6.3418 in the previous session, while the onshore yuan closed at 6.3252 at 16:30 and 6.3257 at 23:30 in the evening.On the same day, the central bank launched a 14-day reverse repurchase operation worth 200 billion yuan with a winning interest rate of 2.25 percent.100 billion yuan of reverse repos mature today.The Federal Reserve will announce its decision on interest rates on Wednesday.Goldman sachs expects the decision to point to a March rate hike.At the same time, Morgan Muller-Glissman, a strategist at the Bank, warned of a “rate hike shock” that could trigger a “growth shock” if the Fed tightened monetary policy aggressively to curb inflation.”This risk is increasing given that the US is facing the biggest inflationary pressures since the 1980s.”He said.In addition, the International Monetary Fund (IMF) lowered its forecast for world economic growth in 2022, citing a weak economic outlook and high inflation in some economies, including the United States.Citic Securities clearly pointed out that in the first half of this year exports remain resilient and the central bank to strengthen the management of exchange rate expectations, the renminbi is safe in the short term.If export growth slows in the second half of the year, the RMB may be influenced more by the actual tightening of the Federal Reserve, the narrowing interest rate differential between China and the US and the stronger DOLLAR index.Source: China Business News

Leave a Reply

Your email address will not be published.