Experts Discuss Three Reasons for the Strength of the Renminbi Breaking Through

The RMB exchange rate continues to perform strongly. On August 10, the central parity rate of the RMB against the US dollar was raised by 20 basis points to 6.7884, the highest level since February 10, 2023. On the same day, the onshore RMB reached a peak of 6.7429 against the US dollar during trading, marking a new high since February 6, 2023. As of the time of publication, the onshore RMB exchange rate was last reported at 6.7458. "The phased weakening of the dollar is the primary catalyst for this round of RMB appreciation," said Lian Ping, chairman of the China Chief Economist Forum, in an interview. On one hand, the joint intervention by the US and Japan in the yen exchange rate has led to a short-term rebound in the yen, weighing on the dollar index. On the other hand, the easing of geopolitical risks in the Middle East has alleviated risk aversion, further pushing the dollar to adjust. In addition, the weakness in US macroeconomic data has exacerbated the weakness of the dollar, giving non-dollar currencies generally the momentum for recovery.