Yuan Surges to Four-Year High Ahead of Trump-Xi Meeting

The yuan has hit its strongest level in over four years as China maintains pressure on the currency's daily trading reference rate ahead of a planned meeting between Chinese President Xi Jinping and U.S. President Donald Trump next week.

The offshore yuan rose as much as 0.1% to around 6.7 per dollar, its strongest level since July 2022, with the People's Bank of China setting a firmer daily fixing for an eighth consecutive trading day.

This move comes ahead of the September 24 Trump-Xi meeting in Washington, where trade and economic ties are expected to remain key issues. The yuan has been Asia's strongest-performing currency this year, helped by robust Chinese exports and increased demand from companies converting foreign-currency earnings into yuan.

China is also expanding its clearing infrastructure, with the Shanghai Clearing House beginning central-counterparty services on September 14 for spot transactions in the yen, euro, and dollar, with 12 banks participating and 996 million yuan in transactions cleared during the initial session. This move broadens the currencies that can access China's onshore central-clearing network.