The Central Parity Of RMB Has Risen Sharply By 179 Points. New High Since Last July

Sino US economic and trade consultations have made substantial progress, and the exchange rate of RMB against the US dollar is rising at home and abroad.

Following the 25 days' rise in both the offshore renminbi exchange rate and the offshore RMB exchange rate, the Foreign Exchange Trading Center released data showing that in February 26th, the yuan rose to 179 basis points against the US dollar, at 6.6952, a record high since July 18, 2018.

On the 25 day, the yuan rose to 20 basis points against the US dollar, which was 6.7131, the highest since February 1st, rising for fifth consecutive days.

On the same day, offshore and offshore RMB exchange rates against the US dollar rose by hundreds of points, both of which set a new high since July 2018.

Xinhua news agency said that the seventh round of Sino US economic and trade consultations "made substantial progress in specific aspects of technology pfer, intellectual property protection, non-tariff barriers, services, agriculture and exchange rate."

Analysts believe that the recent Federal Reserve interest rate meeting minutes, monetary policy reports have released monetary policy to maintain a relaxed state, the reduction plan will be ahead of the original plan ahead of schedule.

The short-term US dollar index maintained a concussion trend, and the pressure of currency devaluation in emerging markets diminish; while the Sino US trade consultation agreed on the exchange rate issue, the RMB exchange rate remained stable for a short time.

According to the Securities Daily, Wang Youxin, a foreign exchange researcher at Bank of China International Finance Research Institute, believes that the rise in exchange rate to 6.7 is mainly driven by market sentiment.

The US dollar index is gradually callback, institutional investors gradually reduce the US dollar hedge position, the US bond yields also decline, and the external situation of RMB exchange rate is improved.

From the domestic perspective, the positive growth of exports is better than market expectations. The strong rise of the stock market and the acceleration of inflow of foreign capital all support the strong exchange rate of RMB.

Since the beginning of this year, the RMB exchange rate has continued to appreciate, and the offshore RMB exchange rate against the US dollar has risen 2.5% since the beginning of this year. Offshore renminbi has risen nearly 2.7% against the US dollar since the beginning of this year.

Zhang Yu, director of macroeconomic research at Huacheng securities, pointed out that as long as the economy does not show significant stall, the probability of RMB exchange rate will increase in 2019, and it will be easy to rise and difficult to derogate.

So for the industry with dollar liabilities and import cost logic, there will be favorable exchange earnings.

At the same time, Zhang Yu believes that in the context of the expected appreciation of the RMB exchange rate, aviation, paper, business and other industries are expected to benefit.

Benefiting from the rise in the exchange rate, after the opening of the 26 day, the aviation stocks continued strong, aviation shares continued strong, Rui Mao Tong rose by more than 4%, and the Asia Pacific Airlines rose more than 2%.