Does The Bank Decide For Itself Whether The Exchange Rate Will Cause Fluctuations In The Exchange Rate?

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< p > the central bank intends to let the market find prices, increase the depth of market participants, and make the RMB exchange rate gradually market oriented and internationalized, and the central bank is also ready to strengthen and foster its ability to manage RMB exchange rate after the completion of RMB exchange rate marketization and internationalization in the absence of price difference management and market fluctuation.

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< p > the central bank recently issued the notice on matters relating to the exchange rate of interbank foreign exchange market and the management of bank listing and exchange rates, canceling the management of bank's sale and purchase of the US dollar against the US dollar, and independently pricing the bank according to the market supply and demand.

That is to say, according to the central bank's notice, commercial banks can decide their own exchange rate in retail business.

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According to the original provisions of the central bank, the designated foreign exchange banks provide the difference between the maximum dollar spot selling price and the minimum spot purchase price for the day, which must not exceed 1% of the middle price of the current exchange rate. The difference between the maximum selling price of the cash and the minimum purchase price of the cash can not exceed 4% of the intermediate price of the current exchange rate. "P"

Within the range of the price range stipulated above, the designated foreign exchange banks can adjust the buying and selling price of US dollar cash and cash on their own.

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< p > the new regulation confirms that more non US currencies have entered a larger floating range: the RMB against the euro, yen, Hong Kong dollar, pound sterling, Australian dollar, Canadian dollar and New Zealand dollar are the upper and lower 3% of the middle price of that day; 5% of the fluctuations are Malaysia's Lin Ji and Russian rouble.

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< p > the new regulation is even more striking. In March this year, the central bank expanded the floating rate of RMB against the US dollar to 3%. The difference between the maximum selling price of the US dollar and the minimum spot purchase price offered by commercial banks for the day is not more than 3% of the middle price of the current exchange rate. Now the latest announcement of the central bank simply cancels the bank's management of the spread of the US dollar against the US dollar.

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< p > comparing with the current "a href=" //www.sjfzxm.com/news/index_c.asp "central bank < /a > new regulations, some people think that this is a loosening of foreign exchange management, which means that commercial banks can provide more services and innovation space to customers in foreign exchange trading, and can also reflect the market supply and demand more closely, so that the pricing of foreign exchange is closer to marketization.

Some people even think that the move of the central bank is only a step away from the marketization of the RMB exchange rate.

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Since the RMB exchange rate has been infinitely close to marketization, the advantage of P is self-evident.

However, if the RMB exchange rate is strictly controlled for a long time, will the exchange rate fluctuate violently? < /p >

< p > now, such worries are unnecessary.

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"P > opening up the exchange rate allows commercial banks to decide on the possible risk of exchange rate, which stems from the vicious competition between commercial banks.

The central bank has already asked in advance that the bank should establish and improve the internal management system for listing the exchange rate, effectively prevent risks and avoid unfair competition.

But no one will believe that a piece of paper can stop malicious competition among enterprises.

In fact, competition among banks has always existed, and this competition has narrowed down the scope of the price tag.

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Less than P, more importantly, the central bank's liberalization of the foreign exchange retail market will only affect the small customers who are usually individuals.

At present, domestic individuals are allowed to buy foreign exchange equivalent to US $50 thousand per year.

China's main interbank foreign exchange market has an average daily turnover of around $10 billion, while pactions driven by individual demand account for only a small proportion.

The paction price between banks and large companies has been determined by the interbank market exchange rate.

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"P >" from the above two aspects, the central bank will not cause the risk of drastic fluctuation in the exchange rate of the foreign exchange retail market, but on the other side, the central bank liberates the movement of the RMB exchange rate in the retail market, releasing such a signal that the central bank intends to make the market find the price, increase the depth of the market participation subject, let the a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB exchange rate < /a > gradually market and internationalize, and the central bank is also ready to strengthen and cultivate the exchange rate management ability of RMB after the exchange rate marketization and internationalization of RMB completion in the future.

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