Guan Tao: The strengthening of the RMB is a market choice, and the internationalization of the currency does not rely on appreciation.

On February 12th, both offshore and onshore Renminbi against the US dollar broke through the 6.9 mark. Guan Tao, Chief Economist of Bank of China Securities, said that the recent appreciation of the Renminbi comes from economic fundamentals and market forces, rather than policy choices. In the long term, a strong economy leads to a strong currency, and as China's economy remains stable and grows steadily, the international holdings and use of Renminbi will naturally become more widespread. He emphasized that "Renminbi internationalization cannot be driven by appreciation," and pointed out that the experiences and lessons of other economies repeatedly prove that there is great risk in trying to enhance a currency's global status by pushing for exchange rate appreciation.