The central parity rate of the RMB against the US dollar was lowered by 73 basis points to 7.1338

The central parity rate of the yuan against the U.S. dollar was lowered by 73 basis points to 7.1338. On Thursday, the onshore RMB against the US dollar officially closed at 7.1404, which was 110 points higher than the official closing price of the previous trading day and 54 points lower than the previous night’s closing price. The offshore RMB against the U.S. dollar once rose above the 7.12 mark, but the intraday shock accelerated its fall, and it fell more than 600 points from the daily high at one point.

Powell mentioned the prospect of interest rate cuts next year at the Federal Reserve's interest rate meeting yesterday, indicating that the direction of the policy inflection point is already clear. It is expected that not only will the rate hike be over within the year, but it will even be necessary to end the balance sheet shrinkage and even give guidance on rate cuts. Once this is the case, it will confirm the weakening of the economy, and then the US stock market will have adjustment pressure instead. Domestically, the prospect of RMB appreciation against the US dollar in the second half of the year is basically established, and the certainty of domestic equity assets in the coming year is increasing. 1) The Politburo meeting in July released a positive signal; 2) The domestic economy in the second half of the year is likely to be better than the second quarter; 3) The weakening of the service sector will drag down the US economy, but the physical sector such as real estate and manufacturing will continue to improve, and then From August to December, the growth rate of domestic exports will continue to pick up.