USD/CNY Exchange Rate Forecast 2023

As of 2023 February 23, Wednesday, the current exchange rate of USD/CNY is 6.89692. Statistics show that’s an uptrend in the past year. Economists and financial analysts forecast the exchange rate to be rising further to a certain extent, but relatively limited.


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US Dollar to Chinese Yuan Forecast in 2023

According to Trading Economics, USD/CNY decreased by 1.68% over the last four weeks. And their global macro models projections and analysts forecast that US Dollar to Chinese Yuan to be priced at 6.95867 by the end of this quarter and 7.22734 in one year.  

Zhang Ming, deputy director of the Institute of Finance & Banking (IFB) under the Chinese Academy of Social Sciences (CASS), told Sina Finance his judgment on the Chinese Yuan exchange rate trend in 2023, weighing the good and bad factors. In the first half of 2023, the RMB/USD exchange rate may fluctuate in both directions, for example, in the range of 6.5 to 6.9, considering that the Federal would continue to raise the interest rates and shrink its balance sheet in February. 

In the second half of 2013, the RMB/USD exchange rate may again appreciate significantly, for example, by 6.4 or less.


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How Exchange Rates Influence Your Business

The fluctuation of the exchange rate will directly influence the costs of your business. If the exchange rate increases, it means your currency to another currency appreciates, and the prices of imported goods and services decrease. In this case, you might have an increase in demand, whereas successful import companies should see increased profits, and export companies will then have the opposite effect.

If the exchange rate decreases, on the opposite, it means your own currency to another currency depreciates, and the prices of imported goods and services rise for your business, leading to less demand. However, if your company deals with exports, this is good news for you. 

3 Simple Tips to Minimize Foreign Currency Risk

Apart from the aforementioned adjusting your demand faced with an exchange rate fluctuation, global project owners, developers, and investors especially, may also try these ways to reduce your exposure to foreign currency risk. 
Note: The recommendations below are no guarantee of future price appreciation. Source from investing and finance management editors from

1. Diversify your business globally 

It could make sense to diversify your business in countries or regions that have concentrated exposure to big currencies, such as the U.S., the Euro area, and Asia-Pacific. 
When the dollar goes strong, the non-dollar investments will have a tailwind. On the contrary, when non-dollar assets go weak, dollar-based investments will have that tailwind.


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2. Invest in currency-hedged funds

Investment in another specific country or region’s stocks could be an easy way to neutralize the currency risk. For example, you can buy a fund that invests almost exclusively in the stocks of Japan or the Euro area to hedge out the risks. 


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3. Invest in countries with strong currencies

If you’re looking to invest at a country level, you can look for countries that have strong, rising currencies relative to your own domestic currency. If the foreign currency continues to rise, the investment will be worth more in your home currency.

Source: 1. Trading Economics 2. Currency Transfer 3. Sina Finance 4. Bankrate

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