The RMB exchange rate has fallen! Good time for you to purchase and import!
Dec 13, 2024
Since December, the RMB exchange rate has fluctuated downwards, attracting market attention. On December 3, the offshore RMB exchange rate against the U.S. dollar quickly fell below the 7.3 mark after opening, and then fell further to 7.31, hitting a minimum of 7.3148 yuan, a single-day drop of approximately 280 points, setting a new low since November 2023. On the same day, the central parity rate of RMB against the US dollar dropped by 131 points from the previous day to 7.1996, a new low since September 2023. The depreciation of the RMB exchange rate was mainly due to the appreciation of the U.S. dollar. Before Trump officially took office, the current Democratic Party spent a lot of money in the last two months of his term, and the U.S. national debt exceeded the 36 trillion U.S. dollar mark. If so many U.S. Treasury bonds want to be sold, they need to be attracted by high interest rates. Therefore, the news that the U.S. will not cut interest rates in December further pushed up the U.S. dollar index. The short-term sharp depreciation of a number of non-US dollar currencies such as the RMB will not only help textile foreign trade companies export, but also deepen the risks of future exchange rate corrections.
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