China Financial Times: A Rational View of Exchange Rate Fluctuations The Stability of the RMB Exchange Rate is Backed by Solid Fundamentals

According to an article in the China Financial Times in charge of the central bank, industry experts believe that factors such as changes in interest rate differentials brought about by the divergence of monetary policies between China and the United States, and the periodic strengthening of the U.S. dollar exchange rate have brought short-term and periodic pressure on the RMB exchange rate.
However, with the steady recovery of the domestic economy and the resilience of foreign trade, RMB assets have long-term appeal, and the stability of the RMB exchange rate is supported by solid fundamentals. In the second half of the year, the RMB exchange rate is expected to remain basically stable at a reasonable and balanced level.
Ming Ming, Chief Economist of CITIC Securities, said, “From a mid- to long-term perspective, the U.S. dollar index may weaken as the U.S. economy gradually comes under pressure and the Fed’s tightening policy draws to a close. , And drive the economic fundamentals to bottom out, and then support the stabilization of the RMB exchange rate and even return to the appreciation channel.”