USD/CNY fell yesterday to around 7.16. Nonetheless, economists at Commerzbank believe that the pair could move back higher towards 7.25.

China will strengthen vaccinations for the elderly

“In a press conference yesterday, Chinese health officials said it will speed up vaccination for the elderly. This was seen as a sign that the authorities will allow for a more flexible approach on the zero-Covid policy and a continued step towards reopening.”

“The health authorities also warned against excessive control measures by local authorities, striking a conciliatory tone towards Covid restrictions even though they did not respond directly to the recent protests. Following the press conference, Zhengzhou lifted lockdowns in main urban areas and instead focused on targeting a long list of buildings under the `high-risk´ category.”

“USD/CNY still has a good chance to rise closer towards 7.25 in the coming weeks or months as the Covid situation remains highly uncertain.”