Internal and external factors resonate, and the exchange rate of the Chinese Renminbi reaches a high level in over a year.

As the end of the year approaches, the Chinese Yuan has experienced a wave of strong appreciation. On December 23rd, offshore Yuan against the US dollar first broke through the 7.02 level, the first time since October 2024, with the goal of reclaiming the 7.0 level being within reach. At the same time, onshore Yuan against the US dollar rose above the 7.03 level intraday, increasing by nearly a hundred points. Analysts believe that the weakening trend of the US dollar index and continued release of year-end settlement demand have been the main drivers of this round of Yuan appreciation. Looking ahead, the abundant settlement funds will continue to support the Yuan's biased strength, but the probability of rapid one-way appreciation is low.