Since April 2025, the Chinese mainland’s renminbi (RMB) has flipped the script. After months of sliding, it surged past 7 per US dollar, setting the stage for an exciting 2026. But what’s powering this comeback?
In a recent analysis, Shen Jianguang, chief economist at JD Group, highlights four key pillars primed to fuel further RMB strength next year:
- 📈 Current account surplus expansion: In 2025, exports outpaced imports, driving a robust surplus. More foreign currency flowing in means extra support for the RMB.
- 🤝 Easing trade conflicts: As tensions cool and agreements solidify, cross-border commerce gains momentum, boosting confidence in the renminbi.
- 💪 Undervaluation catch-up: With purchasing power still underpriced, market forces may push the RMB higher to reflect its true value.
- 💵 US dollar outlook: If the US dollar continues its downward trend, the RMB could climb even more in 2026.
Looking ahead, these forces could align like a perfectly choreographed dance, sending the renminbi higher on global charts. Whether you’re tracking forex trends, planning investments, or simply curious about economic shifts, the RMB’s 2026 journey is one to watch. Ready to ride the wave? 🌊
Reference(s):
Looking ahead to 2026: Four pillars supporting RMB appreciation
cgtn.com
