Offshore Yuan Little Changed

2026-02-24 02:02 By Joshua Ferrer 1 min. read

The offshore yuan was largely unchanged around 6.89 per USD on Tuesday, holding near thirty-four month highs, as the People's Bank of China kept rates unchanged for the ninth straight month, while onshore traders returned from a week-long holiday.

The central bank held its one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, indicating that authorities are in no rush to implement broad monetary easing after recent sector-targeted cuts.

The decision also reflects a careful balance between supporting growth and maintaining financial stability.

Meanwhile, mainland markets reopened after the holidays to a cautious mood, as US President Donald Trump announced plans to raise a temporary 10% tariff on imports to 15%, in response to a Supreme Court ruling.

Still, sentiment was aided by renewed dollar weakness, signs of strong forex inflows, following China’s record current account surplus in Q4, and expectations that Trump’s new tax policies could boost Chinese exports.



News Stream
Offshore Yuan Little Changed
The offshore yuan was largely unchanged around 6.89 per USD on Tuesday, holding near thirty-four month highs, as the People's Bank of China kept rates unchanged for the ninth straight month, while onshore traders returned from a week-long holiday. The central bank held its one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, indicating that authorities are in no rush to implement broad monetary easing after recent sector-targeted cuts. The decision also reflects a careful balance between supporting growth and maintaining financial stability. Meanwhile, mainland markets reopened after the holidays to a cautious mood, as US President Donald Trump announced plans to raise a temporary 10% tariff on imports to 15%, in response to a Supreme Court ruling. Still, sentiment was aided by renewed dollar weakness, signs of strong forex inflows, following China’s record current account surplus in Q4, and expectations that Trump’s new tax policies could boost Chinese exports.
2026-02-24
Offshore Yuan Rises
The offshore yuan strengthened to around 6.89 per USD on Monday, moving toward thirty-four month highs, as the US dollar weakened amid renewed trade policy concerns. The US Supreme Court struck down President Donald Trump’s sweeping tariffs, prompting him to first reinstate a 10% rate before lifting it to 15%, a move that could reshape trade terms for key partners. Senior US officials now urge partners to honor previous commitments, while Trump plans a visit to Beijing to ensure continuity under the one-year trade truce. Meanwhile, China said it is conducting a “full assessment” of the court’s tariff decision and urged Washington to remove related unilateral measures. Beijing also signaled it is closely monitoring alternative US actions, including trade investigations, and pledged to safeguard its economic interests. The yuan is likely to see volatility when mainland markets reopen on Tuesday after a week-long holiday, while investors await the PBOC's upcoming policy decision.
2026-02-23
Offshore Yuan Hits Fresh 34-Month High
The offshore yuan strengthened to around 6.89 per USD, hitting a fresh thirty-four-month high, as mainland markets entered the week-long Lunar New Year holiday, shifting price discovery to offshore trading. With onshore exchanges closed for the Spring Festival, liquidity conditions are thinner than usual, leaving price action more sensitive to flows and contributing to the yuan’s stronger move. The firmer tone also reflects expectations that strong holiday travel and consumption could lend support to near-term domestic activity, even as authorities continue to manage overall currency stability. With mainland trading paused, price swings may remain more pronounced until full market participation resumes later this week. On the geopolitical front, reports that the US has paused several tech-security measures targeting China ahead of a planned April meeting between Presidents Donald Trump and Xi Jinping have eased near-term tensions, though broader strategic frictions remain.
2026-02-16