Central Bank Letting Bank Decide The Price Of The Dollar

　　 State Administration of Foreign Affairs Yesterday, in the official website, the notice issued by the people's Bank of China on matters relating to the exchange rate of interbank foreign exchange market and the management of bank listing and exchange rates was announced that the bank would cancel the management of the spread of the US dollar against the US dollar, and it would be priced independently by the banks according to the market supply and demand.

The daily trading price of RMB to us dollar in the inter-bank spot foreign exchange market can still stipulate that the RMB will fluctuate between the upper and lower 2% of the central parity of RMB against the US dollar on that day. In 2006, when the central bank lifted the limit on the spread of the non US dollar listing price of the designated foreign exchange banks, the limit of the spread of the US dollar against the US dollar was finally lifted.

Before that, the central bank carried out the spread of the US dollar listing rate. dollar The difference between the selling price and the buying price of the spot shall not exceed 1% of the middle price of the transaction; the difference between the selling price of the cash and the buying price should not exceed 4% of the middle price of the transaction, and the bank can adjust the quoted price of the US dollar on the day of the stipulated price difference.

Since then, this kind of Spread The chains were completely relieved. The central bank said that banks can independently sell renminbi to various currencies on the basis of market demand and pricing power, and there is no restriction on the price of spot and cash listing and pricing independently according to market supply and demand. Banks should establish and improve the internal management system of listed exchange rates, effectively prevent risks and avoid unfair competition.

The central bank said that after the lifting of the price limit, banks could reasonably establish the US dollar trading price for RMB based on operating costs and fluctuations in the international market. At the same time, market competition will restrict banks' arbitrarily widening the spread and damaging the interests of customers.

Analysts believe that the price difference set up by regulators is a bit of a dead letter and does not play a substantive role. Zhao Qingming, an expert on international financial issues, told the news reporters that this is to improve the marketization of the RMB exchange rate and lift some unnecessary shackles.

"Since the bank's quotation to customers is not uniform, and the amount of foreign exchange trading is not very large, many banks are able to handle foreign exchange business. Because of the competition among banks, the current bid price difference between cash and cash has been very low, and the price difference set by the regulators does not have any substantial effect. Therefore, after opening up, it will not lead to the expansion of the spot purchase price difference and the cash purchase price spread." Zhao Qingming explained.