People's Daily: There are many market and policy factors that will influence exchange rates in the future, and there is still considerable uncertainty regarding the trend of the Renminbi

On December 30th at noon, the onshore Chinese yuan broke through the 7.0 mark against the US dollar, reaching a new high since May 2023. Guan Tao, the global chief economist of BOCIC, believes that there are two main factors driving the recent strengthening of the yuan exchange rate. First, the expectation of interest rate cuts by the Federal Reserve has increased, driving the dollar index down. Since late November, the dollar index has fallen by about 2.0%. Second, this year, in the face of a complex external environment, the Chinese economy has shown strong resilience. Recently, several foreign institutions, including the International Monetary Fund, the World Bank, and Goldman Sachs, have cast a "vote of confidence" in the Chinese economy, raising their forecasts for China's economic growth, which has increased foreign interest in allocating yuan-denominated assets