The central parity rate of the RMB against the US dollar was set at 7.1108 yuan on the 27th, reaching a nearly 10-month high.
Authorized by the People’s Bank of China, the China Foreign Exchange Trade System announced that the RMB central parity rate in the interbank foreign exchange market on Wednesday was 1 US dollar to 7.1108 yuan, an appreciation of 0.80%, setting a new high since November 6, 2024.
The RMB spot rate against the US dollar closed on Tuesday at 7.1621 yuan, with the night session ending at 7.1518 yuan. The latest offshore RMB spot rate is 7.15 yuan, while the previous day’s closing price was 7.1535 yuan.
Since August, the RMB has appreciated against the US dollar amid fluctuations. Wang Youxin, a manager at the Bank of China Research Institute, told Securities Daily that the obvious rise of the RMB against the US dollar is the result of combined internal and external factors. The shift in US Federal Reserve policy has opened up room for RMB appreciation, China’s capital markets have recently rebounded rapidly, trading in the A-share market has been active, and the recovery in risk appetite has also prompted increased cross-border allocation of RMB assets.
A China Merchants Securities report pointed out that September may be a window for observing RMB appreciation; it is expected that after the US Fed cuts interest rates in September, the scale of RMB settlement may further expand. At the same time, if the People’s Bank of China continues to adhere to a market-driven regulatory policy, the RMB exchange rate is expected to return to the '6 yuan era', which will likely greatly enhance the attractiveness of Chinese assets.