On March 30, the central bank continued to exert efforts in liquidity adjustment, conducting large-scale reverse repo operations to offset pressure on the capital side. At the same time, the RMB exchange rate against the US dollar depreciated slightly, and the foreign exchange market operated stably overall, highlighting the resilience of the domestic financial market. Today’s central bank operations and exchange rate changes became the core focus of the domestic short-term capital side and foreign exchange market.
In terms of liquidity adjustment, the central bank conducted a 7-day reverse repo operation of 269.5 billion yuan through fixed interest rate and quantity bidding today, further releasing liquidity to meet the short-term capital needs of the market and maintain reasonable and sufficient liquidity in the banking system. This operation coincided with the period when the capital side tends to be tight at the end of the month. The launch of large-scale reverse repos effectively alleviated the pressure of capital withdrawal at the end of the month, stabilized market expectations for capital interest rates, and avoided capital side fluctuations affecting financial market stability.
In the foreign exchange market, the RMB exchange rate against the US dollar depreciated slightly. Today’s central parity rate of the RMB against the US dollar was reported at 6.9223, a depreciation of 82 basis points from the previous trading day (6.9141). As of 9:31 today, the onshore RMB exchange rate against the US dollar was 6.9151, depreciating by 0.05%; the offshore RMB exchange rate against the US dollar was 6.9217, depreciating by 0.03%. The overall fluctuation range was moderate, with no sharp changes.
Analysts said that the central bank’s reverse repo operations reflect the policy orientation of “stabilizing liquidity”. The pressure on the capital side at the end of the month will be effectively alleviated, and the pattern of “stable volume and price” is likely to be maintained in the future. The slight depreciation of the RMB exchange rate is mainly affected by the global strength of the US dollar and the transmission of risk aversion from geopolitical conflicts. In the long run, with the recovery of the domestic economy and strong policy support, the RMB exchange rate will remain in a two-way fluctuation and generally stable trend, and there is no need to excessively worry about the risk of one-way fluctuation.
