China’s central bank set the yuan at the strongest rate since mid-2023, fixing it at RMB 6.9438 to the dollar, continuing a trend from April 2025 when it hit its lowest point since 2007 of 7.3498. However, comparing it against other currencies, it appears as though it is currently more that the dollar is weakening than that the yuan is strengthening in its own right.
It is significant, in that the yuan is a controlled currency, that Beijing is deciding to strengthen the yuan against the US dollar, the world’s main trading currency. A stronger yuan means a tougher time for Chinese exporters and somewhat cheaper imports, both of which have some impact on China’s record trade surplus with the rest of the world, a growing source of contention.
The other advantage of a stronger yuan is that it improves its chances of being treated seriously as an international currency, in spite of the fact that it is controlled. The overall sense of the market is that Beijing is okay with the yuan continuing to strengthen in the months ahead.