RMB volatility enlarged Offshore RMB dropped to a new low
By：admin Updated：2014-03-20 15:16:35
On 17th, March, The fluctuate range of RMB exchange rate enlarged to 2%; affected by data from China, offshore RMB has weakened, even to a new low for the past ten months.
Hong Kong Monetary Authority shows that, enlargement of the fluctuation range drives the two-way fluctuation flexibility of the exchange rate, thereby perfecting the exchange rate. However, offshore exchange rate in HK has been completely market-oriented, which is not restricted by the fluctuation range, while the exchange rate might be affected by the onshore RMB exchange rate. With the increase of RMB exchange rate flexibility, it is expected that the market will increase its demand of exchange rate risk management tool, which will thus promoting the market development.