Experts analyze two main reasons for the strengthening of the Renminbi exchange rate: one is the progress in the China-US negotiations, and the other is the trend of the US dollar.

In recent days, the performance of the RMB exchange rate has been impressive. On May 6, the RMB against the US dollar was quoted at 7.2008, an increase of 6 basis points from the previous trading day. On May 5, the RMB against the US dollar continued to rise. Offshore RMB once rose above the 7.20 mark, the first time since November last year, reaching a new high in nearly six months. Experts believe that the recent sharp rise of the RMB is mainly due to two reasons. First, there has been a change in the US attitude towards tariffs. Second, domestic stable economic policies have provided crucial support. What will the future exchange rate be like? Wang Qing from the Research and Development Department of Oriental Gold believes that there are two key factors. The first is the progress in US-China negotiations, and the second is the trend of the US dollar. In the future, the RMB is more likely to undergo a two-way fluctuation process opposite to the US dollar. However, do not worry, as the magnitude of this fluctuation is relatively small. Furthermore, compared to other major currencies, the RMB is much more stable.