Yuan Soars Past 6.7 as Investors Left Reeling from Depreciation of US Dollar Deposits

The yuan has broken through the 6.70 mark against the US dollar, reaching its highest level since January 2023. This sudden surge in value caught investors who had bought US dollar deposits off guard.

Mis Qiao from Beijing lamented that her investment of $9,100 in US dollar deposits over two years at an exchange rate between 7.13 and 7.27 has almost resulted in no gain due to the high loss caused by exchange rate changes.

Industry insiders warn that if the yuan continues to appreciate, even with a relatively high interest rate on US dollar deposits, the exchange loss when converting back to RMB may offset or exceed the interest income.