Onshore and offshore Renminbi exchange rates against the US Dollar hit a 14-month high.

The onshore and offshore yuan to dollar exchange rates hit a 14-month high. According to data from China's currency website, the onshore yuan to dollar spot exchange rate rose to a high of 7.0500, reaching the 7.05 level for the first time since October 9, 2024. In the offshore market, according to Sina quotes, the offshore yuan to dollar exchange rate reached a high of 7.046 on December 15, marking a new high since early October 2024. As for the central parity rate, on December 15, the yuan to dollar central parity rate was reported at 7.0656, depreciating by 18 basis points. Ming Ming, chief economist at CITIC Securities, pointed out that the Central Economic Work Conference mentioned the need to "maintain the basic stability of the yuan exchange rate at a reasonable and balanced level," and that the external environment facing the yuan exchange rate in 2026 is relatively friendly. The central bank's policy of maintaining exchange rate stability will be flexible and balanced, adjusting flexibly to ease expectations of a one-sided exchange rate trend, with the yuan exchange rate likely to moderately rise to around 6.9-7.0.