On August 18, the RMB central parity rate against the US dollar was set at 6.7905, down 32 basis points. On the same day, the State Administration of Foreign Exchange (SAFE) released July’s bank settlements and sales of foreign exchange data showing a surplus of RMB 124.1 billion. In US dollar terms, settlements (buying foreign currency) totaled USD 266.3 billion, while sales (selling foreign currency) were USD 248.0 billion, indicating that supply and demand in the foreign exchange market is broadly balanced. The settlement volume in July rose month-on-month, reflecting stable participants’ willingness to settle foreign exchange. In the short term, the RMB exchange rate may continue to exhibit a two-way fluctuation pattern; watch for subsequent signals from the central bank and the US dollar index trend. $USDCNY is for information only and does not constitute investment advice.