Chinese yuan strengthens, exchange rate against USD hits highest level since Sept 2024

The Chinese yuan, or renminbi (RMB), is on a strong run, with the onshore and offshore rates on Thursday breaking through 7.01 yuan and 7 yuan per US dollar, respectively, both reaching their highest levels since September 2024.

The central parity rate of the Chinese currency strengthened 79 pips to 7.0392 against the dollar on Thursday, according to the China Foreign Exchange Trade System.

Since the beginning of this year, the offshore RMB has appreciated by 4.6 percent against the US dollar. In the same period, the onshore RMB exchange rate against the dollar appreciated by 4 percent.

At the fourth quarterly meeting of 2025 held recently by the Monetary Policy Committee of the People's Bank of China (PBOC), the country's central bank, it was noted that supply and demand in the foreign exchange market have been basically in equilibrium, and foreign exchange reserves have been adequate.

The meeting also acknowledged that the RMB exchange rate has moved in both directions and remained basically stable at an adaptive and equilibrium level, according to the PBOC's statement released on Wednesday.

The PBOC will enhance the resilience of the foreign exchange market, stabilize market expectations, and guard against the risk of exchange rate overshooting, so as to keep the RMB exchange rate basically stable at an adaptive and equilibrium level.

(Cover via VCG)