The RMB-to-USD central parity rate has broken through 7.2! Institutions say there is a possibility of it temporarily rising above 7.1.

The RMB exchange rate index will significantly strengthen, and the central fluctuation of the US dollar against the RMB will move from 7.3 to 7.2. The macroeconomic team of China Galaxy expressed that there has been substantial progress in China-US trade negotiations and the uncertainty of the macroeconomy of China and the US has significantly reduced. The RMB exchange rate will show structural differentiation, with the appreciation of the euro and the yen being more significant. At the same time, China Galaxy Macro believes that if the US dollar breaks through the 7.2 threshold against the RMB, the market will show strong appreciation expectations, and the foreign exchange supply and demand relationship may reverse, driving the US dollar against the RMB to potentially rise above 7.1 in the short term, but stabilizing at 7.1 may require more support. Further escalation of China's fiscal policies or more positive signals from the next stage of China-US trade negotiations will help shift the central fluctuation of the US dollar against the RMB from 7.2 to 7.1.