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date
25/12/2025
The offshore Chinese yuan breached the 7 yuan mark for the first time since 2024.
Latest
3 m ago
Wang Qing, the chief macro analyst of Orient Securities, believes that the continuous appreciation of the renminbi will increase the attractiveness of the domestic capital market to foreign funds, which will directly increase the exchange gains of foreign funds. Wang Qing pointed out several direct reasons for the appreciation of the renminbi against the US dollar: first, the continuous weakening of the US dollar index after the interest rate cut by the Federal Reserve on December 11, falling below 100. This is due to the market's expectations of further interest rate cuts by the Federal Reserve in 2026, driving the overall appreciation of non-US currencies including the renminbi. Secondly, the increasing demand for foreign exchange settlement by enterprises nearing the end of the year is also driving the seasonal appreciation of the renminbi; especially with the recent continuous appreciation of the renminbi against the US dollar, the accumulated demand for settlement from the previous high export growth may be accelerating. In addition, the recent continuous strengthening of the renminbi exchange rate is also fueling market sentiment, thereby pushing up the renminbi exchange rate. Wang Qing suggests that for foreign trade enterprises, although the renminbi has been appreciating against the US dollar recently, it is recommended not to bet on the unilateral trend of the renminbi exchange rate. Instead, it is important to stick to one's own business and use forex derivatives tools such as options and futures to control exchange rate fluctuation risks effectively (reported by Netease Finance).
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