Chinese currency has reached a higher value compared to the dollar since July 2022

Porco before 11 a.m. local (04 a.m. in Lisbon), the ‘offshore’ rate – negotiated in international markets such as Hong Kong – was about 6,6962 yuan per dollar, after the Chinese currency valued 0.11% against the last close.

The ‘onhore’ rate, negotiated in the Chinese domestic market, advanced 0.18% and also exceeded the previous maximum, recorded at the beginning of 2023, reaching 6,6973 yuan per dollar.

The People's Bank of China (BPC, central bank) today set the reference rate at 6,7521 yuan per dollar, in what was, according to Bloomberg, the eighth consecutive valuation session against the US currency, the longest sequence since 2023.

The rate fixed daily by the BPC is crucial for the quotation of the yuan in the internal market, since the currency can only oscillate up to 2% in each direction around this value.

According to Bloomberg, the recent central bank decisions indicate that Beijing feels “comfortable” with a stronger yuan before the meeting between Chinese President Xi Jinping and US counterpart Donald Trump in the United States.

However, the BPC continues to fix the reference rate in order to promote a gradual valuation of the currency, avoiding too rapid movements.

Some analysts consider that the proximity of the meeting between Xi and Trump may partially explain the recent evolution of the yuan.

Trump has repeatedly accused China of artificially devaluing the currency to promote exports, and Beijing may seek to prevent the exchange rate issue from becoming a new source of tension during bilateral negotiations.

The yuan has become one of the best performing Asian currencies this year, supported by the strength of Chinese exports.

Valuation remained despite expectations of rising interest rates in the United States, which have pressed upwards the profitability rates of US Treasury securities and expanded the difference from Chinese sovereign debt.

In early 2025, the yuan came close to the lowest value since 2007, in the face of Trump’s return to the White House and fears about the impact of a tariff escalation between the two largest world economies, which later resulted in a ‘de facto’ trade blockade.

At the time, analysts pointed to a Beijing intervention aimed at curbing the devaluation of the currency while seeking to preserve the competitiveness of exports.

Exports made the biggest contribution in 2025 to the growth of Chinese Gross Domestic Product (GDP) since 1997, representing 32.7% of economic expansion, in the context of persistent weakness of domestic demand.