The Chinese renminbi, or yuan, is expected to see a prolonged trend of strengthening against the U.S. dollar amid forecasts that the Federal Reserve (Fed) may start to lower interest rate, said a Chinese expert in an interview with China Global Television Network (CGTN) on Thursday.
As of Friday, the central parity rate of the Chinese yuan has strengthened 11 pips to 7.1449 against the U.S. dollar, according to the China Foreign Exchange Trade System.
"I think we have to keep in mind that the yuan has been experiencing a devaluation for a very long time, for a very long time. I remember it has depreciated (against the U.S. dollar) from, you know, 6.5, something less than 6.5, all the way to close to 7.3. That's a very significant depreciation. And now we start to see that the tide may be turning in a very significant way as the rate in the United States is starting to decline. So, I think we are probably seeing the very beginning of a fairly prolonged trend of yuan strengthening in my view. So, I think this is really the tipping point at this time. And I would expect that, aided with the very encouraging news on the export sector, on the trade surplus dimension, I would expect that the yuan would further appreciate for a little bit more, maybe breaking the seven point mark, in my view," said John Gong, economic professor of China's Economics, University of International Business and Economics.
Experts believe the yuan's appreciation has been driven by market expectations that the Fed may start to lower interest rate in September, and the less-than-expected U.S. economic data in manufacturing PMI and unemployment rate.
The appreciation of yuan is also closely related to the recent strong rebound in Asian currencies such as the yen, as some insiders hold. But with China's domestic policies starting to take effect and the landing of Fed's rate cut, sharp unilateral appreciation may seem less likely.
Chinese yuan to see prolonged trend of strengthening: expert
After more than three months at sea, members of China's 16th Arctic Ocean expedition have jointly created a painting that captures both the triumphs and trials of polar scientific research.
Organized by the Ministry of Natural Resources, the expedition deployed four ships, Xuelong, Xuelong 2, Jidi, and Tansuo 3, to study extreme environmental changes in the Arctic against the backdrop of accelerating global warming. On September 29, Xuelong and Xuelong 2 returned to Shanghai after completing their missions.
During the voyage, China Media Group (CMG) reporters aboard Xuelong invited nearly 100 crew members to collaborate on a canvas, sharing their experiences. The painting depicts the difficulties and challenges they faced, the honors and expectations of their research, and the images of those dedicated to science.
Before any crew member ever picked up a brush, the Arctic had already sketched the background with its extreme weather. Strong winds, torrents, and a harsh environment posed major challenges for the researchers.
"After staying outside for some five or ten minutes, our hands would already be frozen red. When we reached the trough of the waves [on a boat], it would look as if the waves were coming right over our heads," recalled Zhu Chengwei, an expedition member.
Despite the hardship, the researchers successfully tested and used domestically produced advanced ocean observation equipment in polar research -- one of their proudest moments, which they recorded on the canvas.
Qin Chuan, captain of the Xuelong ocean team, chose to paint a domestically produced monitor float.
"This is an Argo float we deployed, which automatically monitors ocean profiles. It has great significance for understanding the basic marine environment, and it's made in China," he said.
Xie Haixiang, director of the Xuelong laboratory, sketched a fundamental research equipment for the trip.
"I will draw a CTD (Conductivity, Temperature, and Depth instrument). The CTD is the most important equipment for ocean surveys, providing the most basic data and water samples," he said.
"Only by carrying equipment onto the Arctic sea ice yourself and lowering the instruments, can you get what you want. For instance, we take a little ocean water, and analyze what's in it, to understand the changes each year. Global warming needs to be understood through different dimensions," recalled researcher Zhu.
Beyond the canvas, what stands out even more striking are the moments of dedication: veteran members leading newcomers onto the ice, a group holding its ground in level-8 gales and heavy snow, and 30 people relaying to recover equipment stuck in the ice.
The most important element, beyond any record or image in the painting, is this group of expedition members who fear no hardship.
"Whenever I think of the polar spirit, countless images of those standing at the very front would flash before my eyes," Zhu said.
"What we have done today will benefit future generations. Although we are doing something that may seem very insignificant, I believe it will surely prove its worth in the future,"said Ning Wenfeng, another team member.
China's 16th Arctic expedition crews paint portrait of proud polar expedition moments, hardships
