Internal and external factors are driving the renminbi exchange rate to continue strengthening.

Recently, the onshore and offshore RMB exchange rates against the US dollar have shown an upward trend. Experts say that the rapid appreciation of the RMB exchange rate is being driven by both internal and external factors, including the relatively mild external environment created by the weak operation of the US dollar index, strong exchange rate expectations released by the RMB-to-US-dollar central parity quote, and the attractive performance of the domestic equity market recently attracting foreign capital inflows. Looking ahead, the RMB exchange rate is expected to remain basically stable at a reasonable and balanced level.