Offshore RMB Fell Below 6.96 Mark, Close On Shore Closed 6.95

On Thursday, the renminbi fell further against the dollar, breaking 6.96 psychological barrier offshore, the lowest level since January last year. The offshore exchange rate closed at 6.95.

At about 16:10 Beijing time, the offshore RMB fell below the 6.96 level to 6.9669, down more than 200 points a day.

The official closing price of the onshore Renminbi against the US dollar closed at 6.95, or 6.9498, 97 points lower than the official closing price of the previous day and 42 points lower than the close of the previous day and night. About half an hour earlier, the offshore exchange rate fell below 6.95, to a minimum of 6.9528.

Yesterday, spot trading of the renminbi against the dollar surged to more than $65 billion, to $65.618 billion, the highest level since data began, surging $15 billion from $50.5 billion the previous day.

Today, the central parity price dropped 52 points, at 6.9409, the first time it fell below 6.94 since last January. The median price is third consecutive days of depreciation, but the cumulative depreciation rate is limited, with a total of 173 points.

By the end of September, the renminbi had fallen against the dollar for the sixth consecutive month, the longest consecutive decline since the merger. In the same period, the US dollar index fluctuated widely, and the monthly change was not significant. Since this year, the RMB has fallen 6.17% against the US dollar, depreciating 19.26% since the 8.11 exchange rate reform in 2005.

In September, China's foreign exchange reserves declined to 3 trillion and 87 billion 20 million US dollars for the second consecutive month. Foreign exchange accounted for a decrease of 119 billion 400 million yuan, the largest monthly decline since January last year.

Gao expressed the hope that the countries concerned would respect market rules, objective facts, not politicize the exchange rate issue, nor impose their own standards on international rules.

The summit also stressed that China, as a responsible power, has repeatedly reiterated that it will not engage in competitive devaluation and will not use the RMB exchange rate as a tool to deal with external disturbances such as trade disputes. Next, China will unswervingly deepen the reform of exchange rate marketization, continue to improve the managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.