The US Dollar to Chinese Yuan (USD/CNY) exchange rate is trading around 6.78 after retreating steadily through 2026, with the Yuan continuing to outperform many major currencies.
Westpac expects the Renminbi to strengthen further over the next two years, forecasting USD/CNY will fall to 6.75 by September, 6.70 by year-end and eventually reach 6.30 by the end of 2028.
The bank argues that China’s long-term currency outlook is becoming increasingly favourable as the country expands its influence over global trade and investment.
According to Westpac, China’s “greatest opportunity” is a sustained recovery in domestic consumption, which would help balance growth away from exports and support broader confidence in the economy.
The bank believes stronger household demand, together with continued investment in advanced manufacturing and technology, should reinforce the structural case for a stronger Renminbi.
Westpac also expects China’s growing role in global trade and financial markets to underpin the currency over time.
According to the bank, the Renminbi is forecast to “sustainably appreciate back to 2022 and 2018’s… highs against the US dollar, circa CNY6.30,” adding that a move beyond that level is possible once the currency’s expanding role in international trade and capital flows becomes more widely recognised.
