Yuan Reaches Four-Year High Ahead of Trump-Xi Meeting
The yuan has reached its strongest level in over four years as China's central bank continues to exert pressure on the currency's daily trading reference rate. The offshore yuan rose by up to 0.1% to around 6.71 per dollar, its highest point since July 2022.
This advance comes ahead of a planned meeting between Chinese President Xi Jinping and U.S. President Donald Trump next week in Washington, where trade and economic ties are expected to remain key issues.
China is also expanding the infrastructure that allows other currencies to be traded and settled more directly against the yuan. The Shanghai Clearing House began central-counterparty services on September 14 for spot transactions in the Singapore dollar, New Zealand dollar, and Thai baht, with 12 banks participating and 996 million yuan in transactions cleared during the initial session.