Core Viewpoint - The CFETS RMB Exchange Rate Index is undergoing its annual weight adjustment to enhance the representativeness of the currency basket, effective from January 1, 2026 [1][2] Group 1: CFETS RMB Exchange Rate Index Adjustments - The weight of the US dollar in the new CFETS currency basket is reduced from 0.18903 to 0.183067910333, while the euro's weight decreases from 0.17902 to 0.178618845848 [1] - The South Korean won replaces the Japanese yen as the third-largest currency in the basket, with the new weight for the won being 0.084557506297 and for the yen being 0.081182351858 [1] - The Australian dollar's weight is decreased from 0.05947 to 0.054093213303, while the weights for the Malaysian ringgit and the Russian ruble have increased compared to 2024 [1] Group 2: BIS Currency Basket Adjustments - The CFETS RMB Exchange Rate Index's currency weights are calculated using trade-weighted methods that consider re-export trade factors, with the current version based on 2023 trade data [2] - The new index will utilize 2024 trade data for weight adjustments, and historical simulations indicate that the trends of the new and current indices are largely consistent [2] - The BIS currency basket will remove the Bulgarian lev due to Bulgaria's entry into the Eurozone in 2026, and the corresponding weight will be added to the euro [2]

Core Viewpoint - The People's Bank of China has announced adjustments to the weights of the currency basket for the CFETS RMB Exchange Rate Index and the BIS currency basket for the RMB Exchange Rate Index, effective from January 1, 2026 [1] Group 1: CFETS RMB Exchange Rate Index Adjustments - The weight of the US dollar in the new CFETS currency basket has decreased from approximately 0.19460 to 0.183067910333 [1] - The weight of the euro has been reduced from approximately 0.18079 to 0.178618845848 [1] - The weight of the Japanese yen has declined from approximately 0.08963 to 0.081182351858 [1] - The weight of the Russian ruble has increased from approximately 0.04603 to 0.050400759694 [1] Group 2: BIS Currency Basket Adjustments - The announcement includes changes to the BIS currency basket for the RMB Exchange Rate Index, although specific weight changes for this basket are not detailed in the announcement [1]

Group 1 - The announcement from the China Foreign Exchange Trading Center details adjustments to the CFETS RMB exchange rate index and the BIS currency basket RMB exchange rate index, including changes in currency weights [1] - The new CFETS currency basket assigns a weight of 0.18307 to the US dollar [1] - The updated BIS currency basket will remove the Bulgarian lev and increase the weight of the euro accordingly [1] Group 2 - The trading center will maintain the currency basket and weights for the SDR currency basket RMB exchange rate index unchanged [1]

Core Viewpoint - The CFETS RMB exchange rate index on December 19 is reported at 97.88, reflecting an increase of 0.17 compared to the last trading day of the previous week on December 12 [1] Group 1: RMB Exchange Rate Indices - The CFETS RMB exchange rate index increased by 0.17 from December 12 to December 19 [1] - The BIS currency basket index for RMB on December 19 is 104.56, which is an increase of 0.28 from December 12 [1] - The SDR currency basket index for RMB on December 19 is 92.36, showing an increase of 0.17 from December 12 [1]

Core Insights - The offshore and onshore RMB exchange rates against the USD have both surpassed the 7.09 mark, reaching a new high in over a year, with the central parity rate set at 7.0826 RMB per USD, an increase of 21 basis points from the previous trading day [1] - The RMB's mid-price has appreciated approximately 1000 basis points year-to-date, supported by a weaker USD and strong domestic equity market performance attracting foreign investment [1] - Experts predict that the RMB will maintain a strong performance against the USD in the short term and may experience moderate appreciation through 2026 [1] Group 1 - The recent appreciation of the RMB is attributed to two main factors: the continuous adjustment of the RMB's mid-price towards a stronger direction and the robust performance of the domestic economy since the beginning of the year, alongside a significant decline in the USD [2] - The adjustment in the RMB exchange rate is aimed at stabilizing the external environment for China's foreign trade enterprises, with expectations of continued strong performance in the short term [2] - The anticipated future actions of the Federal Reserve, including potential interest rate cuts, and the impact of the Trump administration's tariff policies on the US economy are expected to limit the upward potential of the USD index [2] Group 2 - The impact of external fluctuations on China's exports is becoming evident in the fourth quarter, with significant policy measures in place to stabilize the economy, including the issuance of 500 billion RMB in new policy financial instruments and local government debt limits [3] - The internal economic fundamentals are expected to provide substantial support for the RMB exchange rate, with a focus on maintaining a stable RMB against the USD [3] - The RMB exchange rate is projected to remain stable, with limited potential for rapid appreciation above the 7.0 mark before the end of the year [3]

Core Viewpoint - The offshore and onshore RMB exchange rates against the US dollar have both surpassed the 7.09 mark, reaching a high not seen in over a year, driven by a weak dollar environment and strong domestic equity market performance attracting foreign investment [1] Group 1: RMB Exchange Rate Dynamics - As of November 25, the central parity rate of RMB against the US dollar was set at 7.0826, an increase of 21 basis points from the previous trading day, with a year-to-date increase of approximately 1000 basis points [1] - Analysts attribute the recent appreciation of the RMB to two main factors: the continuous adjustment of the RMB central parity rate towards a stronger direction and the unexpected growth in exports, which has boosted confidence in the RMB [2][1] Group 2: Future Outlook - The RMB is expected to maintain a strong performance in the short term, with key factors to monitor including the US dollar's movements, the adjustment of the RMB central parity rate, and the effectiveness of domestic growth policies [2] - The potential for further interest rate cuts by the Federal Reserve and the impact of US tariff policies are likely to limit the upward movement of the dollar index, while the RMB is expected to remain stable with limited volatility against the dollar [2] Group 3: RMB Exchange Rate Indices - As of November 21, all three major RMB exchange rate indices showed an increase, with the CFETS index at 98.22 (up 0.39), the BIS index at 104.66 (up 0.5), and the SDR index at 92.6 (up 0.34), all reaching their highest levels since April 2025 [3]

Core Viewpoint - The recent fluctuations in the RMB to USD exchange rate indicate a generally strong performance despite minor adjustments, with a focus on stabilizing the CFETS index and other currency baskets [1][2]. Exchange Rate Trends - On November 11, the RMB to USD central parity rate was reported at 7.0866, a decrease of 10 basis points from the previous day [1]. - Since breaking the 7.1 mark on October 15, the RMB has maintained a strong performance, with a peak of 7.0836 on November 7, the highest since October 16, 2024 [1]. - The CFETS RMB exchange rate index reached 97.96, the BIS index was at 104.19, and the SDR index was at 92.34, all marking new highs since mid-April [1]. Influencing Factors - The recent slight depreciation of the RMB against the USD is attributed to a small increase in the USD index, which rose by 0.17% last week [2]. - The USD index closed at 99.6202 on November 10 and peaked at 99.739 on November 11 [2]. - Despite external pressures, domestic economic policies are expected to provide support for the RMB, ensuring stability in the fourth quarter [2]. Future Outlook - The RMB is anticipated to exhibit a mild appreciation next year, provided that exports do not experience unexpected changes [3].

Core Viewpoint - The CFETS RMB exchange rate index on October 10 is reported at 97.32, reflecting an increase of 0.55 compared to the last trading day of the previous week (September 30) [1] Group 1: RMB Exchange Rate Indices - The CFETS RMB exchange rate index has risen by 0.55 from the previous week [1] - The BIS currency basket index for RMB on October 10 is 103.43, which is an increase of 0.78 from September 30 [1] - The SDR currency basket index for RMB on October 10 is 91.89, showing an increase of 0.66 from September 30 [1]

Core Points - The CFETS RMB exchange rate index on August 15 was reported at 96.17, reflecting an increase of 0.13 compared to the last trading day on August 8 [1] - The RMB exchange rate indices calculated based on the BIS and SDR currency baskets were 101.93 and 90.85 respectively on August 15, with increases of 0.17 and 0.03 compared to August 8 [1]

Core Points - The CFETS RMB exchange rate index on August 8 was calculated at 96.04, showing a decrease of 0.90 compared to the last trading day of the previous week (August 1) [1] - The RMB exchange rate indices based on the BIS and SDR currency baskets were 101.76 and 90.82 respectively on August 8, reflecting declines of 1.05 and 0.78 compared to August 1 [1] Summary by Category - **CFETS RMB Exchange Rate Index** - The index was reported at 96.04 on August 8, down by 0.90 from August 1 [1] - **BIS and SDR Currency Basket Indices** - The BIS-based index was 101.76, decreasing by 1.05 from August 1 - The SDR-based index was 90.82, down by 0.78 from August 1 [1]