USD/RMB may reach 7.25 by the end of the year

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USD/CNY has broken the 7.20 level.

The yuan may depreciate further.

We reiterate our policy expectation that the government is likely to continue to tolerate relatively weak CNY/USD and expect USD/CNY to remain around 7.20-7.25 throughout 3Q23.

Looking ahead, we maintain our view that the RMB may depreciate further against the USD and reiterate that the USD/CNY exchange rate may reach 7.25 by the end of this year.