In order to strength the representativeness of currency baskets of CFETS RMB Indices, China Foreign Exchange Trade System (CFETS) will adjust weights for CFETS RMB Index, and currency basket and weights for BIS Currency Basket RMB Index according to the adjustment rules for CFETS RMB Indices’ currency baskets. New version indices will be effective on 1^st January 2020.

1.Adjustments to the weights for CFETS RMB Index

The weights for CFETS RMB Index are calculated by international trade weights with adjustments of re-export trade factors. The current weights are calculated by trade data on 2015. In order to strength the representativeness of CFETS RMB Index, CFETS will replace the weights with trade data on 2018. Through historical trial calculation, the operating trend between new weights and current weights for CFETS RMB index is basically consistent.

Table 1: The currency basket and weights for new version CFETS RMB Index

2. Adjustments to the currency basket and weights for BIS Currency Basket RMB Index

Bank for International Settlements (BIS) adjusted the currency basket of the effective exchange rate index in April 2019, and therefore CFETS plans to adjust the currency basket and weights for BIS Currency Basket RMB Index. Compared with the current index, the new currency basket will add Icelandic Krona and reduce Venezuelan Bolivar, respectively. The weights for new index will be the same with BIS effective exchange rate index.

Table 2: The currency basket and weights for new version BIS Currency Basket RMB Index

3. Remain SDR Currency Basket RMB Index unchanged

The new version weights for IMF SDR currency basket remains unchanged from inclusion of Chinese RMB in the SDR currency basket on 1^st October 2016, and therefore CFETS will also remain currency basket and weights for SDR Currency Basket RMB Index unchanged.

Table 3: The currency basket and weights for SDR Currency Basket RMB Index

China Foreign Exchange Trade System

26^stDecember 2019