Offshore Yuan Rises as PBoC Defends Policy

2026-10-09 02:23 By Czyrill Jean Coloma 1 min. read

The offshore yuan rose to around 6.69 per dollar on Friday, after holding steady for two consecutive sessions as China defended its exchange-rate policy amid trade talks with the European Union.

EU officials have increasingly pointed to exchange-rate imbalances, arguing that the yuan’s undervaluation bolsters Chinese exporters’ competitiveness and exacerbates the bloc’s widening trade deficit with China, which exceeds €1 billion ($1.12 billion) a day.

Meanwhile, the People's Bank of China argued that exchange-rate adjustments alone would not resolve structural imbalances in the global economy and that China’s export strength reflects growing industrial competitiveness rather than currency policy.

Both developments came as the yuan strengthened against most major currencies this year, while the euro has fallen more than 10% against the yuan from its January peak, weighed down by sluggish European growth and France’s fiscal challenges.



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Offshore Yuan Rises as PBoC Defends Policy
The offshore yuan rose to around 6.69 per dollar on Friday, after holding steady for two consecutive sessions as China defended its exchange-rate policy amid trade talks with the European Union. EU officials have increasingly pointed to exchange-rate imbalances, arguing that the yuan’s undervaluation bolsters Chinese exporters’ competitiveness and exacerbates the bloc’s widening trade deficit with China, which exceeds €1 billion ($1.12 billion) a day. Meanwhile, the People's Bank of China argued that exchange-rate adjustments alone would not resolve structural imbalances in the global economy and that China’s export strength reflects growing industrial competitiveness rather than currency policy. Both developments came as the yuan strengthened against most major currencies this year, while the euro has fallen more than 10% against the yuan from its January peak, weighed down by sluggish European growth and France’s fiscal challenges.
2026-10-09
Offshore Yuan Steady for Second Session
The offshore yuan held steady for the second consecutive session at around 6.70 per dollar on Thursday, as investors returned from the week-long Golden Week holiday. Investors continued to assess China’s most significant stimulus efforts since September 2024, aimed at helping the economy meet the government’s 4.5%-5.0% growth target this year rather than driving a broad-based economic revival. The measures include newly announced mortgage subsidies, expanded central bank funding facilities, and a State Council commitment to introduce “a package of practical and effective additional policies. The move came as months of weaker economic data raised concerns over a further loss of momentum following a disappointing second quarter. China’s economy expanded 4.3% year-on-year in Q2 2026, down from 5.0% in Q1 and below the 4.5% market consensus. The reading marked the weakest annual growth since Q4 2022.
2026-09-30
Offshore Yuan Extends Gains
The offshore yuan strengthened to around 6.70 per dollar on Tuesday, extending gains from the previous session as expectations for policy stimulus grew to support domestic demand and economy. China’s government bond issuance is set to accelerate in Q4 after local governments used only 81% of their annual special bond quota in the first nine months of 2026, while the State Council said it may activate unused borrowing quotas from prior years, potentially allowing debt sales to exceed the remaining 2026 allocation. The prospect of increased debt issuance comes as concerns over China’s economic growth and domestic consumption deepen. Meanwhile, investors looked ahead to a batch of official and private PMI surveys due on Wednesday, with particular attention on assessing the resilience of China’s manufacturing sector, which is supported by solid foreign demand and strength in technology-related industries.
2026-09-28