The offshore renminbi once broke 7, and state media warned "never bet on the unilateral appreciation of the renminbi"

The offshore RMB exchange rate broke through the 7 mark last week, reaching a new high since September 2024. In light of the rapid rise in exchange rates, the two major state media outlets, Shanghai Securities Journal and China Securities Journal, issued warnings to market participants not to bet on the unilateral appreciation of the RMB. Analysts believe that the authorities will not allow the RMB to appreciate significantly, and there is still potential for the US dollar index to rise, making the unilateral appreciation of the RMB unsustainable. The state media called on enterprises and financial institutions to adhere to a risk-neutral philosophy and to manage exchange rate risks effectively