Global currency markets are experiencing increasing volatility, while the RMB's performance remains steadily strong.
According to China News Service, both the offshore and onshore RMB/USD spot exchange rates broke through 7.09 on the 25th, reaching their highest level in over a year.
In the view of Wang Qing, Chief Macro Analyst of Oriental Jincheng, there are two main reasons behind this trend. First, the RMB/USD central parity rate has been continuously adjusted towards a stronger direction recently. Second, China's exports have exceeded expectations this year, and since July, China's domestic capital market has strengthened, which has increased settlement demand and also boosted market confidence in the RMB.
Taking all influencing factors into consideration, analysts expect that the RMB will remain in a relatively strong position in the short term. The US Federal Reserve may continue to cut interest rates in the future, which would limit upward momentum for the US dollar index. In the short term, the RMB/USD central parity rate will likely remain supported towards a stronger direction with a certain degree of adjustment.
"Overall, this helps provide a stable external environment for Chinese foreign trade enterprises," Wang Qing said. The RMB exchange rate will still be mainly stable, generally maintaining an inverse fluctuation with the US dollar, with relatively small volatility.