Both onshore and offshore RMB exchange rates against the US dollar hit a 14-month high.

PANews reported on December 15th that, according to data from China Foreign Exchange Trading System, the spot exchange rate of the RMB against the US dollar rose to a high of 7.0500 during trading, marking the first time it has touched the 7.05 mark since October 9th, 2024. In the offshore market, according to Sina's quote, the offshore RMB exchange rate against the US dollar rose to a high of 7.046 during trading on December 15th, a new high since early October 2024. Regarding the central parity rate, the RMB against the US dollar was quoted at 7.0656 on December 15th, a depreciation of 18 basis points. Ming Ming, chief economist of CITIC Securities, pointed out that the Central Economic Work Conference mentioned the need to "maintain the basic stability of the RMB exchange rate at a reasonable and balanced level." The external environment for the RMB exchange rate in 2026 is relatively favorable, and the central bank's exchange rate stabilization policy will remain flexible and moderate, adjusting to ease expectations of one-sided exchange rate movements. The central level of the RMB exchange rate may rise moderately to around 6.9-7.0.