RMB Exchange Rate Continues To Decline, Foreign Exchange Financial Products Gradually Heating Up

< p > in the Gansu branch of Everbright Bank, the reporter saw Mr. Li, who is in the process of handling foreign exchange financing business. He bought the Australian dollar financial product for half a year, and the expected annual yield of the product is 5.5%.

"This year, the yield of Australian dollar financial products is high. If the RMB continues to depreciate, the yield of Australian dollar financial management is considerable."

He said.

< /p >

< p > according to the financial planner of Gansu branch of Everbright Bank, the appreciation rate of RMB exchange rate in the past few years is large, resulting in the yield of some foreign exchange financial products is even negative.

In 2014, as the RMB exchange rate continued to decline, the actual yield of foreign exchange financial products increased considerably, and the investors who consulted and handled foreign exchange financing also increased significantly.

< /p >

< p > reporters visited several banks in Lanzhou and found that the yield of financial products less than a href= "//www.sjfzxm.com/news/index_c.asp" > foreign currency < /a > was far lower than that of RMB financial products.

"At present, there are 3 kinds of US dollar financial products in our bank. The highest annual yield is expected to be forty-sixth in the Bank of China, with a yield of 3.2%."

"If the exchange rate factor is taken into consideration, the yield will not be so high," said the head of financial management of the Gansu branch of Bank of China.

< /p >

The spot exchange rate of US dollar to RMB declined from 6.05 in December 31, 2013 to 6.26 in April 30th, with a depreciation rate of over 3%. P

"If you buy US dollar financial products at the beginning of the year, its current a href=" //www.sjfzxm.com/news/index_c.asp "yield less than /a is close to RMB financial products.

Everbright Bank Gansu branch financial planner said.

< /p >

< p > Yang Delong, chief strategist of the southern fund, reminded investors to purchase foreign exchange financial products launched by formal financial institutions as far as possible, and not to buy foreign exchange financial products recommended by individuals and informal institutions. At the same time, we should see all the terms and details, prevent fraud and credit risks.

< /p >

< p > experts have also reminded investors that the RMB exchange rate volatility has increased from 1% to 2% since March 17th, and the risk of exchange rate fluctuations has increased.

Lin Bocheng, a banking analyst at Huatai Securities, said that in the short term, the RMB exchange rate is going down, but it is hard to say that the long and medium term RMB will continue to depreciate.

< /p >

< p > "if RMB < a href=" //www.sjfzxm.com/news/index_c.asp "> /a > go strong, foreign exchange financing may not be able to make up for the loss of exchange rate.

Moreover, the trend of exchange rate is hard to predict. Once the exchange rate trend is unfavorable, investors will not have the means to avoid risks.

Lin Bocheng said.

In addition, the investment cycle of foreign exchange financial products is generally relatively long, and the liquidity of funds is poor. There is a certain liquidity risk.

< /p >

< p > "investors should choose financial products according to their actual conditions, and do not blindly follow suit."

Lin Bocheng said.

< /p >