China’s currency has strengthened to its highest level against the US dollar since May 2018.
The appreciation over the past year has been attributed to the country’s economic rebound from the COVID-19 pandemic and foreign capital flows into the PRC.
On Friday, the yuan was around 6.36 against the dollar, a significant change from 7.1 a year ago.
Screengrab via XE.com
Financial Times reported that the People’s Bank of China has delivered mixed message’s about the renminbi.
An editorial by a PBoC official published last Friday said China’s central bank should allow its currency to appreciate to combat rising commodity prices. The editorial was later deleted, as cited by FT.
On Sunday, Liu Guoqiang, vice-governor of the PBoC, said he expects the exchange rate to be stable. He added that “the future trend of the renminbi exchange rate will continue to be determined by market supply and demand and changes in the international financial market,” in a very brief Q&A published on the bank’s website.
There’s speculation that the renminbi could reach 6.2 against the dollar, the strongest level since August 2015.
For those looking to move some money out of the Middle Kingdom (within legal limits, of course), now is as good of a time as any.
[Cover image via Pixabay]