The yuan reached a three-year high against the dollar
The Chinese yuan has strengthened to its highest level against the U.S. dollar since January 2023. Against the backdrop of a weakening U.S. currency, the yuan continues to rise. Over the past four months, the Chinese currency has appreciated by more than 9% against the dollar.
According to market data, the offshore yuan rose to approximately 6.72 yuan per dollar, reaching its strongest level since early 2023.
The yuan’s appreciation comes amid a weakening dollar and China’s significant trade surplus. At the same time, the People’s Bank of China is trying to curb excessive appreciation of the national currency by setting the official exchange rate below market expectations.
As a result, the yuan’s performance has become an important indicator for the global foreign exchange market, particularly amid shifts in U.S. and Chinese monetary policy.
China has sharply increased its yuan-denominated lending abroad—to more than 4.8 trillion yuan ($480 billion) over the past five years. This is part of Beijing’s broader strategy to de-dollarize the global economy and strengthen the yuan’s role in international finance.
The Chinese yuan has significantly strengthened its position in the foreign exchange market, breaking through the key psychological threshold of 7.20 per dollar for the first time in six months. The rise was spurred by an agreement between Beijing and Washington on mutual tariff reductions.
