Citigroup anticipates the renminbi will appreciate towards 6.8 against the US dollar by the end of the year, with potential volatility occurring during this period.

Economists at Citi, including Xiangrong Yu, wrote in a report that they forecast the renminbi to strengthen to 6.8 versus the US dollar over the next 6 to 12 months, while expecting the currency pair to potentially fluctuate around 6.9 in the coming three months.

Citi indicated that renminbi volatility could increase in 2026, but the overall trend is biased towards appreciation.

The bank stated, "The central bank may have already partially anchored expectations amid external volatility by influencing the exchange rate. We believe this strategy may no longer be necessary in 2026 and could shift towards a 'managed appreciation'."

Citi also suggested that China's objectives of advancing renminbi internationalization and easing trade tensions are likely to support a stronger currency.