Archive · 23 Dec 2025
China's yuan reaches 15-month high amid dollar weakness
China's money, called the yuan, has become stronger compared to the U.S. dollar.
It's the strongest it's been in 15 months.
The Chinese government is trying to slow down how fast the yuan is getting stronger.
They did this by setting a slightly weaker official rate.
Even so, the yuan kept getting stronger because of things like less tension between China and the U.S. and more Chinese goods being sold to other countries.
Some big banks are also buying dollars to keep the yuan from getting too strong too fast.
Experts think the yuan will keep getting a little stronger, but not too much, to avoid problems in the economy.
China's yuan reached a 15-month high against the U.S. dollar, gaining over 3.8% this year.
The People's Bank of China (PBOC) set a weaker midpoint rate to slow the yuan's appreciation.
The yuan's strength is supported by dollar weakness, easing trade tensions, and strong exports.
Major state-owned banks are intervening to slow yuan gains by buying dollars.
Experts project modest yuan appreciation, with a target of 6.95 per dollar by 2026.
- Who
- China's central bank (PBOC) and currency traders
- What
- China's yuan reached a 15-month high against the U.S. dollar
- When
- Tuesday (specific date not mentioned)
- Where
- China (Shanghai)
- Why
- Due to broad dollar weakness, easing Sino-U.S. trade tensions, and resilient Chinese exports
- Yuan's gain this year
- 3.8%
- Yuan's highest point
- 7.0281 per dollar (onshore)
- PBOC's midpoint rate
- 7.0523 per dollar
- Projected yuan value by 2026
- 6.95 per dollar
- China's trade surplus with the U.S.
- Over $1 trillion (first 11 months of 2023)