Seasonal settlement boost! After the new year, the RMB/USD exchange rate broke above 6.845—so strong! The damage to the dollar's credibility is one of the core reasons behind this round of RMB appreciation, supported by RMB fundamentals. As long as the dollar's credibility remains unrepaired, combined with the RMB's own resilience, the appreciation trend is likely to continue. Several institutions predict a moderate RMB appreciation within the year—Goldman Sachs sees it at 6.70, HSBC predicts 6.75 by year-end. Holding RMB loses, holding USD also loses.