Exchange Rate Two-Way Volatility Will Become The Norm And The Maturity Of Foreign Exchange Futures Will Be Ripe.

< p > < strong > > a href= "//www.sjfzxm.com/news/index_c.asp" > foreign exchange futures < /a > ripe time < /strong > /p >

< p > as of April 25, 2014, the spot exchange rate of RMB against the US dollar closed at 6.2536, reaching a 18 month low. Since then, the RMB spot exchange rate has depreciated by 1996 basis points, and the depreciation rate has reached 3.3%. It has become the fastest stage of RMB depreciation since the 2005 reform.

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< p > Hu Yuyue believes that whether the RMB devaluation is a market force or a central bank intends to do so, the two-way fluctuation of the RMB exchange rate will be a normal situation in the future, which is exactly a sufficient condition for the introduction of foreign exchange futures.

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In the early 1970s, the international financial system changed dramatically. The Bretton Woods system was difficult to sustain. The exchange rate volatility increased from 1% to 2.25%, and foreign currency futures came into being.

In May 1972, the Chicago Mercantile Exchange (CME) set up the international money market division (IMM) to launch seven foreign exchange futures trading varieties including Sterling, Canadian dollar, Mark, franc, Japanese yen and Swiss franc. The first financial derivative was born.

With the development of international trade and the acceleration of world economic integration, overseas forex futures trading has maintained vigorous development for many years.

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< p > Hu Yuyue said, at present, the RMB exchange rate has entered a two-way fluctuation era, which is very similar to the background of foreign exchange futures launched 40 years ago.

From the perspective of marketization, China's marketization is even higher than that of the United States.

Therefore, from the market conditions, the conditions for China to launch foreign exchange futures have basically matured.

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The force effect of < p > < strong > a href= "//www.sjfzxm.com/news/index_c.asp > > offshore market < /a >" /strong > < /p >

< p > Hu Yuyue pointed out that while the major overseas exchanges launched the RMB futures in a rush, the "forced effect" gradually emerged, prompting the domestic market to strengthen the construction and launching the RMB derivatives as soon as possible.

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< p > it is understood that after the successful implementation of China's exchange rate reform in July 2005, overseas exchanges have launched RMB futures.

At present, CME has a total of 18 currencies of foreign exchange futures and options products traded on the stock market, and is firmly in the central position of world financial products trading.

At present, five overseas exchanges have launched seven RMB futures.

As the third largest foreign exchange market in the world, the Singapore Exchange will also launch RMB, yen and baht foreign exchange futures contracts in the fourth quarter of this year to expand existing foreign exchange futures portfolios.

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< p > Hu Yuyue said that if a country's currency pricing power is sidelined, the hand of other countries will lose control of its own currency, and it will also endanger its economic security.

While the major exchanges are actively promoting the development of RMB foreign exchange derivatives, under the background of the current RMB internationalization strategy, foreign exchange futures can not only resolve the systemic risks of RMB internationalization, but also help to grasp the exchange rate pricing power, which is of great significance to China's financial security.

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< p > < strong > boost a href= "//www.sjfzxm.com/news/index_c.asp" > China economy < /a > strategic pformation < /strong > /p >

In 2014, the growth rate of GDP in the first quarter of 2014 was 7.4%, which is the low point since the three quarter of 2012. The "three carriages" of China's economy are in a state of weakness. With the advance of China's financial reform, the degree of marketization of the exchange rate formation mechanism will be further improved, and the risk of exchange rate fluctuation will not only affect China's import and export, but also make our foreign investment income unstable.

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< p > Hu Yuyue said that since 2005, the RMB exchange rate has risen to more than 35% against the US dollar.

Today, as the international economic situation is full of uncertainties, currencies are competing for depreciation and exchange rate fluctuations are increasing, derivatives and foreign exchange futures are the main tools to avoid the risk of exchange rate fluctuations.

Therefore, China's pformation from a large exporter of goods to a large capital exporting country will further expand the scale of China's foreign investment. We need to establish a foreign exchange derivatives market system with foreign exchange futures as the core, and resolve all kinds of risks in foreign investment. At the same time, we need to promote the process of RMB's convertibility step by step, so that more enterprises and investors can boldly "go out", enhance foreign investment, resolve overcapacity and boost China's economic strategic pformation.

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< p > Hu Yuyue believes that the introduction of foreign exchange futures can not only provide an important basic hedge tool for many foreign investment enterprises and individuals, but also speed up the process of RMB free convertibility under capital account, and promote the establishment of our import and improve the system design of overseas investment for individual investors.

At present, the RMB convertibility under the current account has been fully liberalized, and there is still a certain degree of control over capital account.

In May 6, 2013, the new government explicitly stated that "steadily introducing the market-oriented reform measures of interest rate and exchange rate, and proposed the operation plan of RMB capital account convertibility.

We should establish a system for overseas investment of individual investors, and gradually liberate individuals to invest abroad.

These reform projects should formulate specific timetable and roadmap as soon as possible, so as to coordinate the adjustment of China's opening up strategy and promote the strategic pformation of China's economy.

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< p > Hu Yuyue stressed that China has entered a new era of two-way fluctuation of RMB, and the current economic situation has undergone tremendous changes.

At this time, China should actively respond to the timely introduction of foreign exchange futures to promote China's economic pformation, industrial upgrading and structural adjustment, so as to achieve sustained and stable economic growth.

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