USD/CNY has surged above the 7.20 level. Economists at Credit Suisse analyze the pair’s outlook.
More RMB depreciation is likely
We reiterate our policy expectation that authorities will likely remain tolerant of a relatively weaker RMB against the USD and expect USD/CNY to remain around 7.20-7.25 throughout 23Q3.
Looking ahead, we maintain our view that there will likely be additional depreciation of the RMB against the USD and reiterate that the bilateral exchange rate might reach 7.25 by the end of this year.
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