Affected by the rapid rise of the U.S. dollar index, non-U.S. currencies have generally depreciated. However, the exchange rate of the Chinese currency, the renminbi (RMB), is relatively stable and its variation range is much lower than that of other major currencies.
China's foreign exchange market has shown strong resilience, according to SAFE. The country's trade in goods maintained a relatively high surplus, and its foreign direct investment in actual use continued to grow.
In addition, the overall net purchase of Chinese securities by foreign investors since August reflects the long-term investment value of RMB assets.
China's forex market participants are becoming more rational, and the exchange rate expectation is stable at present, which is helping the RMB exchange rate remain basically stable at a reasonable and balanced level, SAFE said.
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