"Weak US Dollar" Expected to Strengthen, RMB Exchange Rate Gaining Momentum for Appreciation

On July 24th, the central parity rate of the RMB against the US dollar was raised by 29 basis points to 7.1385, an increase of 149 basis points since the beginning of the month, reaching the highest level since November 6, 2024. The fluctuation of the US dollar index, the unpredictable interest rate cuts by the Federal Reserve, and changes in overseas economic and trade conditions since July have not affected the stable trend of the RMB exchange rate. The better-than-expected performance of US economic data has not reversed market expectations for a "weak dollar". With the support of the steadily improving economic fundamentals in China, the momentum of RMB appreciation has further accumulated. In the view of the interviewed experts, the RMB exchange rate may stabilize and tend to rise, and it is important to seize the favorable opportunity for the internationalization of the RMB, further promoting the settlement and pricing functions of the RMB.