In China, the zero-covid strategy has caused the economy to slump. Economists at Commerzbank expect the renminbi to remain under pressure and forecast the USD/CNY pair at 6.70 by end-2022.

CNY weakness expected

“The current weakness and the structural problems of the Chinese economy argue for devaluation pressure on the renminbi. In addition, significant rate hikes are on the horizon for the Federal Reserve, while the Chinese central bank should rather ease monetary policy.”

“We forecast 6.70 for USD/CNY at the end of 2022 and 6.80 for USD/CNY at year-end 2023.”