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PBOC Sets Yuan Fix Below 7 as Currency Hits 32-Month High

Officials lift the daily benchmark to guide gains at a controlled pace.

Overview

  • China set the central parity at 6.9843 per dollar on Monday, the strongest fixing since May 2023.
  • The fixing was 551 pips weaker than market estimates, the largest weak-side deviation since records began in 2022.
  • Onshore yuan touched 6.9539, its strongest level since May 16, 2023, with offshore trading near 6.95 during Asian hours.
  • A softer U.S. dollar and pre–Lunar New Year corporate conversions have supported the currency’s recent gains.
  • The yuan is up 0.5% year to date after a 4.5% rise in 2025, and Barclays expects authorities to resist further appreciation and introduce measures to ease upward pressure.