“The appreciation of the RMB will reduce the exchange profits of exporters, while the costs of importers will decrease.” Wang Qing, chief macro analyst at Dongfang Jincheng, said that foreign trade enterprises should not bet on the unilateral trend of the RMB exchange rate, but should stick to their business and use foreign exchange derivatives such as options and futures as much as possible to control the risk of exchange rate fluctuations. The Central Economic Work Conference stated that the basic stability of the RMB exchange rate should be maintained at a reasonable equilibrium level. The Monetary Policy Committee of the People's Bank of China at its regular meeting in the fourth quarter of 2025 emphasized “preventing the risk of exchange rate overadjustment.” “Two-way fluctuations in the RMB exchange rate and increased flexibility are the norm. The next step is to continue to enhance the resilience of the foreign exchange market, stabilize market expectations, and prevent the risk of exchange rate overadjustment.” Lou Feipeng, a researcher at the Postal Savings Bank of China, said.

“The appreciation of the RMB will reduce the exchange profits of exporters, while the costs of importers will decrease.” Wang Qing, chief macro analyst at Dongfang Jincheng, said that foreign trade enterprises should not bet on the unilateral trend of the RMB exchange rate, but should stick to their business and use foreign exchange derivatives such as options and futures as much as possible to control the risk of exchange rate fluctuations. The Central Economic Work Conference stated that the basic stability of the RMB exchange rate should be maintained at a reasonable equilibrium level. The Monetary Policy Committee of the People's Bank of China at its regular meeting in the fourth quarter of 2025 emphasized “preventing the risk of exchange rate overadjustment.” “Two-way fluctuations in the RMB exchange rate and increased flexibility are the norm. The next step is to continue to enhance the resilience of the foreign exchange market, stabilize market expectations, and prevent the risk of exchange rate overadjustment.” Lou Feipeng, a researcher at the Postal Savings Bank of China, said.