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What does the basis point of RMB exchange rate against the US dollar mean?
Renminbi is the legal tender in People's Republic of China (PRC), and the People's Bank of China is the national competent authority for the administration of Renminbi, responsible for the design, printing and distribution of Renminbi. ?

The dollar is the legal tender of the United States of America. At present, the US dollar banknotes in circulation are all the banknotes issued since 1929.

Exchange rate refers to the ratio or price of one country's currency to another country's currency, or the price of another country's currency expressed in one country's currency. Exchange rate changes have a direct regulatory effect on a country's import and export trade.

(basis point) The difference between the spot price of the same commodity and the futures contract price. That is, the gap between the current price and the futures price. Calculation formula: spot price-futures price = basis point

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Due to the cost of holding, the basis point is usually negative. In general, the spot price is actually lower than the nearby futures price. As the delivery deadline approaches, the holding cost decreases, and the difference between spot and futures prices narrows. The financial industry usually uses the basis point to express the interest rate change of financial instruments, or the difference (price difference) between two interest rates (including the yield of fixed-income securities).

China usually adopts 100 foreign currency as the standard and converts it into a certain amount of RMB, that is, the price of a foreign currency is expressed in RMB, and its formula is 100 foreign currency = X.

When 100 unit of foreign currency can be exchanged for more RMB, the foreign exchange rate will rise, the foreign currency will appreciate relative to RMB, and the RMB will depreciate, that is, the price of foreign currency expressed in RMB will rise, which is beneficial to China's exports but not to imports.

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