24-055 | May 2024 On the Edge Between Appreciation and Depreciation GUO Kai CF40 Institute Abstract: This year, the RMB exchange rate has slightly depreciated against the US dollar and appreciated to a certain extent against a basket of currencies. However, as the RMB exchange rate has recently been consistently close to the weak side of the 2% maximum fluctuation range around the central parity rate, the market still perceives the RMB as facing depreciation pressure. This article argues that from a fundame ...