Goldman Sachs said that the RMB is undervalued by 25%, and its appreciation will exceed the price shown in the forward contract. The Wall Street agency called the RMB one of its “highest confidence” transactions, saying that judging from the predicted exchange rate model, the RMB is undervalued. The model aims to predict the optimal exchange rate level required to maintain the fundamentals of the Chinese economy, including conditions such as maintaining a stable current account, economic growth, and stable prices. Driven by factors such as the weakening US dollar, capital inflows into the mainland stock market, the RMB internationalization process, and a stronger median price, both onshore and offshore renminbi are expected to appreciate for the first time since 2021.

Goldman Sachs said that the RMB is undervalued by 25%, and its appreciation will exceed the price shown in the forward contract. The Wall Street agency called the RMB one of its “highest confidence” transactions, saying that judging from the predicted exchange rate model, the RMB is undervalued. The model aims to predict the optimal exchange rate level required to maintain the fundamentals of the Chinese economy, including conditions such as maintaining a stable current account, economic growth, and stable prices. Driven by factors such as the weakening US dollar, capital inflows into the mainland stock market, the RMB internationalization process, and a stronger median price, both onshore and offshore renminbi are expected to appreciate for the first time since 2021.