The yuan has seen its weakest valuation against the US dollar since 2008. Economists at Rabobank expect the USD/CNY to peak at 7.35 by the second quarter of 2023.

Limited further upward potential for USD/CNY

“Suppressed demand from the West will put further pressure on China’s export growth engine. However, a lot of bad news is already priced in and therefore we see limited further upward potential for USD/CNY.”

“We expect USD/CNY to reach 7.25 at the end of this year while gradually rising further to 7.35 at the end of Q2 next year. From then on we see room for the yuan to regain some strength which should bring USD/CNY back to 7 at the end of 2023 since we expect a recovery starting in the second half of 2023.”