@donavissiana
In early 2025, China initiated its largest sale of offshore bills, amounting to RMB 60 billion, to defend the renminbi against increasing short positions. This move aimed to reduce offshore renminbi liquidity, making it more costly for traders to bet against the currency. The renminbi had weakened past RMB 7.33 to the dollar, prompting concerns about China's commitment to currency stability. Investors anticipated further depreciation, with forecasts suggesting the renminbi could fall to RMB 7.5 or beyond by year-end.
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