Commerzbank Sees CNY Gradually Appreciating Against US Dollar
Commerzbank FX & Commodity Analyst Volkmar Baur believes China's strong trade surplus, driven by green technology exports, is supporting a stronger Chinese Yuan. The bank forecasts that USD/CNY will remain within the 6.75-6.80 range in the near term, with a gradual appreciation of the CNY against the US Dollar.
The stable performance of the CNY is attributed to China's large foreign trade surplus, which has led to a significant inflow of foreign currency into the country each month. This influx of foreign capital has resulted in Chinese state-owned banks building up their foreign exchange reserves.
Looking ahead, Commerzbank expects the CNY to continue moving within this range and anticipate a slight appreciation against the US dollar to support the internationalization of the RMB.