Experts sure RMB will likely stay in stable band

Although USD/CNY has breached the psychological level of 7 to touch a two-year low, there is little room for the Chinese currency to decline continuously or to fall drastically, experts said on Friday.

For the first time since August 2020, the offshore renminbi exchange rate against the US dollar dropped to breach a key threshold of 7 on Thursday. The onshore RMB exchange rate against the greenback also fell below 7 on Friday.

The People's Bank of China said on Friday that short-term pressure for the RMB's depreciation has all been released so far. RMB has demonstrated both appreciation and depreciation this year, showing stronger elasticity.