SMM News: June 7, China Dragon Boat Festival, the offshore RMB exchange rate against the dollar near noon fell sharply.
At about 10:40 Beijing time, the offshore RMB exchange rate against the US dollar fell significantly, and then the decline expanded, falling below the 6.94 and 6.95 barriers in a row. At 16: 00, the offshore renminbi fell further, falling below 6.96 at one point.
It hit 6.9624, its lowest level since November 2018, and fell nearly 400 points on the day, the biggest drop since May 31.
Yesterday, the onshore renminbi closed at a two-week low against the dollar, with trading volume falling to a four-month low due to a narrow range. The midpoint also hit a new low in nearly a week.
The renminbi has generally held steady in recent weeks, but fell 2.5 per cent in May as a whole.
Bank of Communications chief economist Lian Ping recently wrote that there is no need to worry about RMB exchange rate fluctuations, the RMB exchange rate should be able to maintain basic stability in the new reasonable equilibrium level range.
In the middle of last month, central bank governor Yi Gang said that he was confident that the RMB exchange rate would be basically stable at a reasonable and balanced level, that the interest rate spread between China and the United States was still in a relatively comfortable range, and that the possibility of the Federal Reserve raising interest rates dropped
Low, are conducive to the stability of the RMB exchange rate.
In late May, Guo Shuqing, chairman of the CBRC, warned in his speech at the 2019 Tsinghua Wudaokou Global Financial Forum that China's economic fundamentals determine that it is impossible for the RMB to continue to depreciate, and speculation against the RMB is bound to suffer greatly.