Core Viewpoint - The Chinese yuan exchange rate indices showed an overall increase in the week of May 9, with the CFETS index at 96.53, the BIS index at 102.16, and the SDR index at 91.11, indicating a strengthening of the yuan against a backdrop of fluctuating global currencies [1][2]. Exchange Rate Indices - CFETS RMB exchange rate index reported at 96.53, up 0.33% week-on-week [1][2] - BIS currency basket RMB exchange rate index reported at 102.16, up 0.07% week-on-week [1][2] - SDR currency basket RMB exchange rate index reported at 91.11, up 0.67% week-on-week [1][2] External Factors - The US dollar index increased by 0.38% to 100.4218, marking its first recovery above the 100 level since early April [6] - Despite the dollar's strength, external pressures on the yuan were limited due to easing tariff expectations and a general appreciation of Asian currencies [6] - The expectation of a weaker dollar has led to increased foreign exchange hedging demand in some Asian countries, providing support for the yuan [6] Internal Factors - The People's Bank of China announced a 0.5 percentage point reduction in the reserve requirement ratio effective May 15, which may exert some pressure on the yuan [7] - The yuan's central parity maintained above 7.20 against the dollar, with adjustments being less than market expectations, indicating a moderate weakening trend against a basket of currencies [7] Economic Insights - Experts suggest that maintaining stability in the yuan's exchange rate against the dollar is crucial for managing cross-border capital flows and supporting exports [8] - The divergence in economic cycles and monetary policies between China and the US may provide a foundation for the yuan's dual-directional fluctuations [8] Domestic Economic Measures - The People's Bank of China introduced measures to lower the reserve requirement ratio and support financial institutions in key sectors such as service consumption and elderly care, with a total loan quota of 500 billion yuan at a 1.5% interest rate [11] - The China Securities Regulatory Commission released a plan to promote high-quality development in public funds, including measures to reduce investor costs and enhance fund performance evaluation [11]
三大人民币汇率指数全线上行,CFETS按周涨0.33
Xin Hua Cai Jing·2025-05-12 05:39