RMB counterattack Offshore rate one day surge in 800 basis points

As of January 11, 20:30, offshore renminbi exchange rate against the dollar at 6.6087.

In the middle of stabilizing RMB prices, but shares still fell on the day after, both inside and outside the Yuan/dollar launched a large counterattack after the market closed. Which offshore renminbi exchange rate soared by 800 basis points yesterday.

As of January 11, 20:30, offshore renminbi exchange rate against the dollar to 6.6087, than the intraday low of 6.7062, appreciation nearly 1000 basis points, compared with yesterday's closing price of 6.6820, also skyrocketed nearly 800 basis points; about 6.57 in the onshore Renminbi exchange rate, more than the previous day closing up about more than 220 basis points.

However, under the current rules, tomorrow's Yuan central parity (January 12) in accordance with 16:30 the price for price estimates, 16:30 price of 5.5822, and median price today was 6.5626, a January 10-price 6.5888 up 262 basis points.

After this round of counteroffensive, both inside and outside the Yuan (offshore and onshore) spreads up to 1600 basis points from January 6, narrowed to more than more than 300 basis points, less than 400 basis points.

You know, because it spreads widen, the money in speculation the Yuan carry from the dips of the currency outside, then selling prices to the Mainland. Thus, after the Central Bank of China has stepped up efforts to investigate and punish and end a number of foreign exchange settlement and sales business.

On January 11, Hong Kong is RMB liquidity crisis overnight lending rate from 4% in one day, soared to all-time high 13%. Reason is that companies are willing to lower prices to borrow Yuan, reduce dollar debts: even if they do not immediately carry expected trend of devaluation of the Renminbi, Yuan can carry in the future (to borrow Yuan back into dollars, to buy Yuan Yuan to the dollar to repay the loan, make a poor exchange rate).

Yuan launched a counterattack, is widely believed to move Central Bank aimed at stabilizing exchange rates, but the range is so big, probably intended to force against Yuan short. SFC registration will not stop IPO audits won

RMB exchange rate currently has three price indices: us, spot market prices, FOB market prices. Which will refers to two market transaction prices. And the so-called central rate, can be simply understood as the Renminbi "official rate", often being regarded as the Central Bank "will", the Central Bank will announce this morning a daily data, the spot exchange rate is based on prices in the middle of the day allowed only within a certain percentage above and below the middle price of RMB float, more reflects market demands. On August 11 last year, Central Bank adjusted the pricing mechanism requires market-making reference to yesterday's closing price quotes. From January 4 this year, the onshore Yuan market to extend market 23:30 daily, but still 16:30 price for closing prices as a benchmark in the middle.