On Tuesday this week, the offshore RMB exchange rate against the US dollar was 7.15.

Since the beginning of April, in less than three months, the offshore RMB has appreciated by nearly 3,000 points, which is almost a one-sided appreciation. That is to say, if you were unlucky and had planned to exchange 10,000 US dollars into RMB in early April, but only did it now, you would have lost nearly 3,000 RMB in vain.

Why has the RMB appreciated so sharply?

One reason is that the US dollar has dropped. After Trump took office, he launched a series of aggressive actions, such as the “tariff war”, cracking down on illegal immigrants, and threatening to fire the chairperson of the Federal Reserve. These actions have weakened the credit of the US dollar. A survey by an institution shows that the proportion of institutions bearish on the US dollar is approaching a 20-year high. The US dollar index has dropped from 110 points at the beginning of the year to 96 points at present.

Of course, from Trump’s own perspective, he also hopes to see a weak US dollar so as to better implement his domestic tax reduction and external tax policy.

The second is that the game between China and the United States has eased. Perhaps no one in the world could have imagined that this year, the “tariff war” between China and the United States would be the fiercest, but it would be negotiated the fastest and most effective compared to other countries. China and the United States reached a framework in London and are expected to make new progress in the next step. The appreciation of the RMB against the US dollar at this juncture is in line with market expectations.

Third, the appreciation of the RMB has a relatively solid foundation. First, before this year, China’s technological strength was long underestimated. It was not until the emergence of deepseek this year, new achievements in China’s military industry, and new breakthroughs in the chip field, etc. There are already Chinese technology stocks in the market that can rival the seven major US stock markets. However, due to long-term undervaluation, Chinese technology stocks have the potential to catch up and be favored by funds.

Second, since 2020, the United States has implemented unrestrained quantitative easing, which has led to an overabundance of the US dollar and a high inflation rate. During the same period, China’s monetary policy was relatively prudent, the inflation rate was at a low level, the value of the RMB was relatively stable, and there was confidence in a strong exchange rate against the United States.