What does it mean by how many basis points the central parity of the RMB against the US dollar has f

One basis point in exchange rate fluctuations is one ten-thousandth.

The middle price of the exchange rate is 6, that is, 4 decimal places are retained, which can better correspond to the basis point).

As a result, it moved 50 basis points lower, that is, yesterday.

That is to say, the renminbi has appreciated by 50 basis points against the US dollar, which is about 1/10,000 yuan! The higher price shows that the yuan has depreciated against the US dollar! It's actually just how much money is exchanged for 1 dollar.

For example, if the yuan is against 1 US dollar, it is 50 basis points lower, which is the yuan against 1 US dollar!

Most exchange rates are generally kept to 4 decimal places, and 1 of the fourth decimal place is called 1 basis point.

If the exchange rate of the US dollar against the RMB is **to, we call the exchange rate of the US dollar against the RMB **223 basis points.

To put it simply, the amount of 1 yuan converted into dollars is less.

This is not much to do with the depreciation of the renminbi. This basis point is very small, and it is like four decimal places after a single digit, which is one ten-thousandth of a basis point.

This also shows that the RMB has depreciated, and the Chinese need to take more money to buy goods priced at the same dollar. This will discourage China's imports** and benefit China's exports**. Wild beard.

China Economic Net, Beijing, September 6 According to data from the China Foreign Exchange Trade Center, today, the central parity of the RMB exchange rate against the US dollar was quoted in yuan, down 98 basis points from the previous fiber digging trading day. On the previous trading day, the central parity of the exchange rate of the RMB against the United States and the Xiangyuan was quoted in yuan.

Chinese judge Qiaoqiao Fangmin Bank authorized the China Foreign Exchange Trade Center to announce that on September 6, 2022, the central exchange rate of RMB in the interbank foreign exchange market is: 1 US dollar to RMB yuan, 1 euro to RMB yuan, 100 yen to RMB yuan, 1 Hong Kong dollar to RMB yuan, 1 British pound to RMB yuan, 1 Australian dollar to RMB yuan, 1 New Zealand dollar to RMB yuan, 1 Singapore dollar to RMB yuan, 1 Swiss franc to RMB yuan, 1 Canadian dollar to RMB yuan, RMB 1 to Malaysian Ringgit, RMB 1 to Russian ruble, RMB 1 to South African rand, RMB 1 to South Korean won, RMB 1 to UAE dirham.

The rebasing point of the RMB exchange rate against the US dollar should be that the RMB is depreciating.

Taking the central parity of the RMB exchange rate against the US dollar as an example, market makers, including Bank of China, refer to the exchange rate of the interbank foreign exchange market on the previous day before the opening of the interbank foreign exchange market every day, and provide the exchange rate parity ** to the China Foreign Exchange Trade System (CFETS) by taking into account the supply and demand of foreign exchange and the changes in the exchange rates of major international currencies. CFETS uses the ** of all market makers as a sample for calculation. After removing the highest and lowest **, the trading center weights and averages the ** of the remaining market makers to obtain the median price of RMB against USD on that day.

The weights are determined by CFETS based on the trading volume and ** of market makers in the interbank foreign exchange market. It should be emphasized that the central parity of the RMB exchange rate is formed according to the independence of the market maker bank. The China Foreign Exchange Trade System (CFETS) publishes the central parity of the RMB exchange rate once a day, once a day.

Daily trading of RMB against USD in the interbank foreign exchange market** can fluctuate within 2% of the central parity of RMB against USD on that day. It's a market deal** that fluctuates all the time. This is also reflected in the bank's settlement and sales**, there are more than one day**.

This means that the exchange rate between the renminbi and the U.S. dollar has become higher, and if Chinese residents want to travel to the United States, the cost will also be higher, more money will be needed, and it will also have a big impact on Chinese banks.

The central parity of the renminbi against the U.S. dollar has fallen, which indicates that the renminbi is depreciating. However, in the international world, this is good for China's exports, but not good for imports.

It shows that the RMB is exchanged for less US dollars, and the RMB is depreciating, while the US dollar is very valuable, which will have an adverse impact on studying abroad, traveling and shopping, and will also cause a severe situation.

This means that China's GDP will not grow this year in dollar terms.

The People's Bank of China raised the central parity of the renminbi by 731 points, the largest increase since July 22, 2005, and stronger than expected.

The renminbi is not a market exchange rate, so what can be the reason for the sudden increase of 731 basis points?

Let's talk about why. First of all, the increase in the central parity of the RMB exchange rate means that the RMB has appreciated against the US dollar, which is conducive to retaining foreign capital. In the first quarter of this year, there was a net outflow of one trillion yuan of foreign capital, which China can bear.

Other countries have long been game over.

Nothing can only be superficial, and the superficial meaning can only make you unconsciously led away. There must be a cause and an effect, and why the appreciation and depreciation have a huge relationship with the national strategy and the actual domestic situation.

This unprecedented increase of 731 basis points is first of all to attract funds and ease the pressure of capital outflows. If there is more capital in the market, the liquidity will be better, and the financing of real estate will become easier accordingly, which is good for the industry in urgent need of financing.

The most important thing is that the sudden sharp increase in that means that the financial pressure is huge, the increase in the RMB exchange rate will increase the profits of foreign-funded enterprises, the original total profit is 10 million US dollars, I am about to withdraw your exchange rate increase, now it can be exchanged for 12 million US dollars, which is equivalent to my original investment has increased in value, which is a disguised interest rate hike for foreign capital.

If you have to take your funds away, you have to pay more taxes if you make a profit of 30% and then exchange rate fluctuations now become 50% of your profit? (Only for foreign capital, the original profit can be exchanged for 8 million US dollars, but now it can be exchanged for 10 million, which is more than 20% of the tax).

Is the overpaid part of the money fiscal revenue? Investors thought to themselves, I didn't lose money by withdrawing at this time! This will certainly not be an easy way to divest. As long as you lock this part of the funds in China, you are not afraid that you will not continue to follow up the investment direction in the future.

Then someone said that the appreciation of the renminbi is not conducive to exports, which is also in line with my intentions! My purpose is to force the domestic low-end production capacity and force the transfer of funds to the middle and high-end industries. As for what you said will affect jobs, it's not a problem, the epidemic has not affected it for three years, and now I'm still afraid of your impact.

If you don't count, it won't matter!

Secondly, after the appreciation of the renminbi, it is conducive to imports, and the tariffs on imports are much higher than those on exports, and the exchange rate ** imports are cheaper, and the taxes have also increased?

Isn't it just what I like when I have more import tariffs a month than a year of export?

Secondly, I have invested so much globally, I originally invested 10 million yuan, and now it is equivalent to 12 million yuan I have invested, has the profit also increased accordingly? State-owned enterprises pay profits and taxes. Doesn't this mean that the import enterprises and the foreign capital of state-owned enterprises will be cut off?

From the moment we make up our minds to upgrade our industries, it is only a matter of time before the renminbi appreciates.

The biggest significance is that there will be a good outbreak period for the entire dollar, and its upward ** will drive a new dynamic of the entire dollar.

It has enhanced the status of the renminbi in the international arena and advanced its role one step further, while increasing the income of our foreign exchange while avoiding the renminbi exchange rate**.

In fact, it is a kind of protection for the United States and our country to avoid the problem of inflation.

The 170 basis point increase in the central parity of the renminbi against the US dollar will bring about the benefits that China will face in the first placeInflationThe impact becomes smaller, and the second is to make China's economy more smooth and can increase the correspondingSurplusThe ability to make some countries in the international community in foreign trade transactions will give preference to the use of RMB as the settlement currency, and there is a financial order that can stabilize our country's financial order and fully activate the corresponding economic market, we need to elaborate and analyze the RMB against the US dollar exchange rate of 170 basis points from the following four aspects, what benefits will be brought.

First, it will make the impact of inflation in China smaller

The first is to make the impact of inflation in China smaller, and for our country, some of the inflation it is facing is continuously decreasing, which is conducive to improving the people.

and can allow a lot of people to get some development opportunities for a long time.

Second, to make China's economy more smooth, we can increase the corresponding surplus capacity

The second is to make China's economy more smooth, can increase the corresponding surplus capacity, for China's economic capacity, if there is a more stable currency purchasing power in the long-term development, then the country can export more goods to overseas markets.

Third, some countries in the international community will give priority to using RMB as the settlement currency when conducting foreign trade transactions

In addition, some countries in the international community will give preference to the use of RMB as the settlement currency when conducting foreign trade transactions, and some countries may give up the corresponding US dollar or euro.

to choose RMB as the settlement currency of foreign trade.

Fourth, it can stabilize our country's financial order and fully activate the corresponding economic market

In addition, it can stabilize our country's financial order and fully activate the corresponding economic market, and for us, we should use the stability of the corresponding RMB to fully activate the order of the corresponding economic market.

Precautions that the state should do:

It should be combined with the actual way to develop the corresponding foreign trade business.

For our people, there are still a lot of benefits brought by the increase in the central price of RMB. The depreciation of the dollar and the increase in the central parity of the renminbi mean that we can buy more things with 100 yuan bills.

That could improve the renminbi's international status, and at the same time, it could bring greater benefits and promote China's economic development.

The appreciation of the RMB exchange rate against the US dollar will be beneficial to China's import and export** and economic development.

On May 27, the seventh working meeting of the national foreign exchange market self-discipline mechanism was held in Beijing, and representatives of 30 member institutions of the national foreign exchange market self-discipline mechanism attended the meeting. The meeting pointed out that the current foreign exchange market is generally balanced. In the future, there are many market and policy factors that affect the exchange rate, and the RMB may both appreciate and depreciate.

No one can be accurate** about the exchange rate movements. Whether it is short-term or medium-term and long-term, inaccurate exchange rate measurement is inevitable, two-way fluctuations are the norm, whether it is **, institutions or individuals, we must avoid being misled by ** conclusions.

What does the appreciation of the renminbi mean?

We all know that the recent appreciation of the RMB is closely related to the over-issuance of the US currency, since 2020, the Federal Reserve has maintained a loose monetary policy, resulting in the flood of dollars in the market to all countries in the world, which country will appreciate the dollar, which country will appreciate locally, after the appreciation of the local currency, it will affect the export business, and exports are one of the three carriages of economic development. But once the interest rate is cut, the dollar will raise interest rates in turn, and the return of the dollar in 7 years has led to the sale of assets in other countries and the rest of the chicken feathers, this time they have had enough of this acquisition method and decided to rebel against the development of the dollar, or many European countries in China also default to the appreciation of their local currency, it is undeniable that the appreciation of the local currency will indeed affect the export business, but the RMB has been undervalued for a long time, and now it belongs to the return of value, so the impact is limited. <>

What are the benefits of RMB appreciation?

The appreciation of the RMB is good for import enterprises, you can pay attention to the companies that do import business, but on the other hand, the continuous appreciation of the RMB will also attract the currencies of various countries to flow into China, resulting in a passive increase in the currency of the domestic market, pushing up assets, **ah will go further**. From May 25th to 27th, the northbound capital flowed into more than 45 billion yuan for three consecutive days, which is the market's attitude towards China's A-shares and the Chinese market, so it will be inevitable that A-shares will rise. <>

What is the impact of RMB appreciation on our lives?

Imported goods are cheaper, and China's main import-dependent varieties include pulp, chemical raw materials, petroleum, ore, high-end equipment manufacturing, etc. Related industries may usher in a phase of benefits. Second, the export of goods is higher, which reduces China's international competitiveness as the world's factory, and the most direct impact is the industrial transfer of low-end industries.

Such as machinery and electronics, clothing and textiles, furniture and household appliances, plastics and other goods. <>

The most important thing is to maintain the balance of the foreign exchange market, representing the appreciation of the renminbi, at present, there are indeed many problems with the international currency, especially the problem of the US currency, which is also to ensure the safety of China's currency and financial system.

Our renminbi in China is worth a lot, and our economy has a certain status, and everyone is convinced of us.