Since January 1, 2023, adjust the currency basket weights of the CFETS RMB exchange rate index and the SDR currency basket RMB exchange rate index, and since January 3, 2023 will extend the trading hours of the interbank foreign exchange market to 3:00 the next day.
After the announcement, the offshore and onshore RMB both moved higher, with the onshore RMB recovering the 6.90 mark against the USD, a new high since September this year, up over 600 points during the day. The offshore yuan recovered the 6.91 mark against the U.S. dollar, up more than 600 points during the day.
On December 30, the People’s Bank of China and the State Administration of Foreign Exchange (SAFE) announced that the trading hours of the interbank foreign exchange market will be extended from 9:30-23:30 to 9:30-3:00 on the following day, including all trading varieties of RMB foreign exchange spot, forward, swap, currency swap and option from January 3, 2023.
The adjustment will cover more trading hours in Asian, European and North American markets. This will help expand the depth and breadth of the domestic foreign exchange market, promote the coordinated development of onshore and offshore foreign exchange markets, provide more convenience for global investors, and further enhance the attractiveness of RMB assets.
To make the currency basket of the RMB exchange rate index more representative, the China Foreign Exchange Trade Center plans to adjust the currency basket weights of the CFETS RMB exchange rate index and the SDR currency basket RMB exchange rate index in accordance with the Rules for Adjusting the Currency Basket of the CFETS RMB Exchange Rate Index (CFE Bulletin [2016] No. 81). Continue to keep the currency basket and weights of the BIS Currency Basket RMB Exchange Rate Index unchanged. The new version of the indices is effective as of January 1, 2023.
Compared with 2022, the ranking of the top ten weighted currencies in the new version of the CFETS currency basket remains unchanged. Among them, the weights of the US dollar, the euro and the Japanese yen, which ranked in the top three, have decreased, the weight of the Hong Kong dollar, which ranked fourth, has increased, the weight of the British pound has decreased, the weights of the Australian dollar and the New Zealand dollar have increased, the weight of the Singapore dollar has decreased, the weight of the Swiss franc has increased and the weight of the Canadian dollar has decreased.
Post time: Jan-10-2023