Just now! The yuan “broke 7”!

In September, under the influence of the Federal Reserve's interest rate cut and a series of important domestic policies announced, the RMB exchange rate broke through the key point of 7.0 on September 25. Specifically, on the morning of the 25th, the offshore yuan recovered the 7.0 mark against the US dollar during the day, reaching a maximum of 6.9993, for the first time since May last year. 

The onshore yuan has also performed well against the dollar. Data from the Foreign Exchange Trade Center showed that on September 24, the onshore yuan closed at 7.0385 yuan against the US dollar at 16:30, up 202 basis points from the closing price on September 23, and the intraday high of 7.0316 yuan. 

Pan Gongsheng, governor of the People's Bank of China, said at a press conference held by The State Council Information Office yesterday that the depreciation pressure on the RMB exchange rate has eased significantly due to the recent adjustment of monetary policies in major economies, and the RMB exchange rate has shifted to appreciation. 

Pan Gongsheng said that the exchange rate is a complex issue, which is the comparison relationship between currencies, and its influencing factors are very diverse. For example, economic growth, monetary policy, financial markets, geopolitics, sudden risk events, etc., these will have an impact on the exchange rate. From the external situation, due to the divergence of economic trends in various countries, the U.S. presidential election and other geopolitical changes, so the impact of the international financial market fluctuations, the external environment and the trend of the dollar is still uncertain. Judging from China's domestic situation, the RMB exchange rate still has a relatively solid and stable foundation. 

Pan said the PBOC's stance on exchange rate policy is clear and transparent. First, we should uphold the decisive role of the market in the formation of the exchange rate and maintain the flexibility of the exchange rate. Second, we should strengthen the guidance of expectations, prevent the foreign exchange market from forming unilateral consistent expectations and self-realization, prevent the risk of exchange rate overshoot, and keep the RMB exchange rate basically stable at a reasonable and balanced level. 

Currency traders said that the market will continue to digest positive policies in the short term, and investor confidence will be further repaired. With the Federal Reserve entering the interest rate cut cycle, the external pressure on the RMB will also weaken, and the medium-term outlook will be good.