RMB exchange rate breaks 7

 Onshore and offshore RMB exchange rates against the U.S. dollar both broke through 7

On May 17, the onshore RMB exchange rate against the U.S. dollar fell below the "7" mark, the first time since December last year.

On the morning of the 17th, the offshore RMB exchange rate against the US dollar also fell below the integer mark of "7". As of 16:00, the onshore and offshore RMB exchange rates against the US dollar were 7.0015 and 7.0178 respectively.

On May 18, the RMB exchange rate continued to fall.

In the past five years, the RMB exchange rate against the US dollar has broken through "7" three times, but soon returned to within "7", and the exchange rate elasticity has increased significantly, and the market has become more calm about breaking "7". People's Bank of China Governor Yi Gang previously said that "7" is not a psychological barrier. It broke through "7" three times and then returned to below "7", and the entire economy is stable.

The RMB exchange rate will remain basically stable at a reasonable and balanced level. Some small two-way fluctuations are also market-driven. Such fluctuations are good for the economy, and are beneficial to my country's imports and exports, as well as everyone's expectations.

Market participants pointed out that the short-term rebound of the US dollar is not a trend reversal. Looking ahead to the second half of the year, there is no basis for the RMB to depreciate in a trend.

Data from the State Administration of Foreign Exchange show thatThe exchange rate in April was 72%, up 8 percentage points from the monthly average in the first quarter of this year.The foreign exchange sales rate was 71%, up 3 percentage points from the monthly average in the first quarter of this year. In April, the willingness of enterprises and other operating entities to settle and sell foreign exchange increased.

According to relevant polls,52% (509 votes) of foreign trade people said that they would "convert the currency now."

RMB internationalization takes a step further

China has taken a substantial step forward in cross-border RMB settlement transactions in the oil and gas trade, highlighting the growing international status of the RMB.

On May 16, the Malvern, fully loaded with 65,000 tons of liquefied natural gas, completed loading and unloading at the CNOOC Guangdong Dapeng LNG Receiving Station. This ship's cargo is my country's first imported liquefied natural gas settled in RMB, marking a substantial step forward in my country's exploration of cross-border RMB settlement transactions in the field of oil and gas trade.

As one of the important buyers in the global liquefied natural gas market, China's infrastructure scale continues to expand, and the number of participants in international trade is increasing, which puts higher demands on international trade services. According to data from the General Administration of Customs, in 2022, my country imported more than 500 million tons of crude oil and more than 100 million tons of natural gas, of which 63.44 million tons were liquefied natural gas imports.

Carry out RMB settlement in international LNG trade
Good forPromoting the connection between international and domestic markets
as well asEfficient circulation of two resources at home and abroad

Experts: The proportion of the RMB in global trade settlement will continue to rise.

The UN report also shows that with high inflation, rising interest rates and increasing uncertainty, the prospects for a strong recovery in the global economy remain bleak, and the world economy faces the risk of long-term low growth.China's inflation rate is lower than many major economies and its fiscal foundation is sound, which means that China's monetary and fiscal policies have a lot of room to support economic growth.

China's automobile exports rank first in the world for the first time

In 2022, China's automobile exports will reach 3.111 million units, ranking second in the world, surpassing Germany for the first time and second only to Japan. At the beginning of this year, industry insiders predicted that China's automobile exports may continue to grow strongly this year, with exports reaching 4 million units, and it is expected to surpass Japan within the year and become the world's largest automobile exporter.

Now this prediction has been achieved in the first quarter.

Beating Germany and Japan, automobile exports ranked first in the world in the first quarter!

According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers, 1.07 million vehicles were exported in the first quarter of this year, a year-on-year increase of 58.1%.

During the same period, data from the Japan Automobile Manufacturers Association showed that Japan exported 954,000 vehicles in the first quarter, a year-on-year increase of 5.6%.

The above data show that in the first quarter of this year, my country's automobile exports have surpassed Japan and are expected to become the world's number one.

Specifically, in the first quarter, among the top ten countries in terms of automobile export volume, Russia, Mexico and Belgium ranked in the top three, with strong market performance. The top three countries for new energy vehicle exports were Belgium, Australia and Thailand.

Compared with the same period last year, the export value of the United States decreased slightly year-on-year, while the export values of other countries all showed positive growth, among which Belgium, Russia and the UAE had more obvious growth rates.

Market analysts said that with the current growth trend, it is as sure as a rock that China's auto exports will exceed 4 million in 2023. However, there are also certain concerns. As China's auto growth momentum becomes stronger and stronger, it is foreseeable that the possibility of overseas markets enacting protective regulations will also increase. China's auto industry can only accelerate to win more chances.

Source: Focus Vision, People's Daily, China News Network, China Association of Automobile Manufacturers, etc. and network compilation

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