Offshore Yuan Steady Despite Lower GDP Target

2026-03-05 03:56 By Czyrill Jean Coloma 1 min. read

The offshore yuan steadied around 6.89 per dollar on Thursday, as a stronger daily fixing helped offset cautious market sentiment following Beijing’s newly lowered economic growth target.

China set a GDP growth target of around 4.5% to 5% for 2026, its most restrained goal since 1991, signaling policymakers’ growing willingness to tolerate slower growth as they shift the economy toward more sustainable drivers and reduce reliance on debt-fueled property and infrastructure investment.

The lower target also underscores rising recognition in Beijing that the model which powered China’s rapid expansion for more than four decades is facing mounting structural pressures.

Meanwhile, the PBoC set the daily midpoint at 6.9007 per dollar, about 0.07% stronger than its previous fixing and the strongest level in 34 months.

The firmer midpoint was interpreted by market participants as an effort by authorities to steady the currency amid broad dollar strength and heightened geopolitical tensions.



News Stream
Offshore Yuan Steady Despite Lower GDP Target
The offshore yuan steadied around 6.89 per dollar on Thursday, as a stronger daily fixing helped offset cautious market sentiment following Beijing’s newly lowered economic growth target. China set a GDP growth target of around 4.5% to 5% for 2026, its most restrained goal since 1991, signaling policymakers’ growing willingness to tolerate slower growth as they shift the economy toward more sustainable drivers and reduce reliance on debt-fueled property and infrastructure investment. The lower target also underscores rising recognition in Beijing that the model which powered China’s rapid expansion for more than four decades is facing mounting structural pressures. Meanwhile, the PBoC set the daily midpoint at 6.9007 per dollar, about 0.07% stronger than its previous fixing and the strongest level in 34 months. The firmer midpoint was interpreted by market participants as an effort by authorities to steady the currency amid broad dollar strength and heightened geopolitical tensions.
2026-03-05
Offshore Yuan Snaps 3-Session Decline
The offshore yuan strengthened past 6.89 per dollar on Wednesday, breaking a three-session losing streak, primarily driven by a firm daily fixing and strong corporate demand. The People's Bank of China set the fixing at 6.9124 per dollar, stronger than last week's pre-Middle East tension close. The move aimed to mitigate risks from a stronger US dollar and rising oil prices amid the geopolitical conflict. Additional support for the yuan were corporate clients converting foreign exchange revenue into yuan amid dollar strength. On the economic front, official data showed both manufacturing and services PMIs remaining below the 50-mark threshold. In contrast, a private survey reported continued expansion in both sectors. Market focus has also shifted to Beijing’s annual “Two Sessions”, the National People's Congress and the Chinese People's Political Consultative Conference, where policymakers are expected to outline economic policy, technological development, and defense.
2026-03-04
Yuan Rebounds After Strongest Fix in Six Months
The offshore yuan strengthened to around 6.89 per USD on Tuesday, snapping two sessions of losses after the central bank delivered its largest midpoint adjustment in over six months. The People’s Bank of China set the daily fixing at 6.9088 per dollar, 148 pips firmer than the previous level, signaling efforts to steady the currency amid heightened geopolitical tensions in the Middle East. Still, the midpoint came in weaker than market estimates, suggesting authorities are balancing support for the currency with flexibility. The move also follows recent steps by the central bank to adjust FX forward reserve requirements, highlighting its calibrated approach to rein in the fast-rising yuan while cushioning exporters from sharp swings. Attention now turns to China’s annual “Two Sessions”, scheduled from March 4 to around March 11, where authorities are expected to set economic targets, outline policy priorities, and release the 15th Five-Year Plan detailing objectives for 2026–2030.
2026-03-03