Offshore Yuan Lingers Near 2022 High

2026-10-15 03:12 By Czyrill Jean Coloma 1 min. read

The offshore yuan strengthened to around 6.69 per dollar on Thursday, lingering near its strongest level since July 2022 even as the IMF said China’s stimulus efforts were insufficient and flagged the currency’s undervaluation.

Beijing has introduced mortgage subsidies and expanded central bank support for targeted sectors, while the State Council pledged to roll out “a package of practical and effective additional policies” to meet this year’s economic goals.

However, the IMF has called for more ambitious measures, estimating that the yuan is undervalued in real terms by 17.3% to 25.3% in 2026, with a midpoint of 21.3%.

China’s currency valuation has become a flashpoint in global trade discussions, with debate centering on whether it drives trade imbalances or reflects broader economic conditions.

The PBoC argued that the IMF’s assessment does not constitute a judgment on the yuan’s nominal exchange rate or justify calls for a deliberate appreciation against specific currencies.



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Offshore Yuan Lingers Near 2022 High
The offshore yuan strengthened to around 6.69 per dollar on Thursday, lingering near its strongest level since July 2022 even as the IMF said China’s stimulus efforts were insufficient and flagged the currency’s undervaluation. Beijing has introduced mortgage subsidies and expanded central bank support for targeted sectors, while the State Council pledged to roll out “a package of practical and effective additional policies” to meet this year’s economic goals. However, the IMF has called for more ambitious measures, estimating that the yuan is undervalued in real terms by 17.3% to 25.3% in 2026, with a midpoint of 21.3%. China’s currency valuation has become a flashpoint in global trade discussions, with debate centering on whether it drives trade imbalances or reflects broader economic conditions. The PBoC argued that the IMF’s assessment does not constitute a judgment on the yuan’s nominal exchange rate or justify calls for a deliberate appreciation against specific currencies.
2026-10-15
Offshore Yuan Trades Near Multi-Year High
The offshore yuan traded around 6.69 per dollar on Wednesday, trading near its storngest level since July 2022 as strong external demand continued to support China’s economic outlook. China’s trade surplus widened to $133.53 billion in September 2026 from $88.72 billion a year earlier, marking its largest surplus since January 2025. Exports surged 36.3% year-on-year to a record $447.18 billion while imports climbed 31.0% to a record $313.66 billion. China’s trade surplus totaled to $938 billion in the first nine months of the year, putting it on track to reach $1 trillion. Meanwhile, annual consumer inflation edged up to a three-month high of 0.9% in September from 0.8% in August. Producer price inflation climbed to 5.0% from 3.8%, marking the strongest rise since June 2022. Renewed Middle East hostilities and risks to global oil supplies have added to cost pressures, squeezing corporate margins as businesses struggle to pass higher input costs on to consumers.
2026-10-14
Offshore Yuan Steady
The offshore yuan held around 6.69 per dollar on Tuesday, after recently hitting a more than four-year high, as central bank guidance kept the currency steady. The central bank set the yuan’s daily midpoint at 6.7298 per dollar, its firmest level since February 2, 2023, underscoring policymakers’ tolerance for yuan strength. The yuan was also underpinned by resilient Chinese exports and bullish calls from Western banks, which have argued that the currency remains undervalued. Goldman Sachs’ Kamakshya Trivedi indicated that the yuan is undervalued by 20% to 25%, as policymakers grow more comfortable with yuan appreciation to support trade ties and boost its global role. Meanwhile, China and the European Union recently reached an agreement that could reduce Chinese hybrid car exports to the bloc by more than half, as both sides seek to address the EU’s widening trade deficit with China amid growing tensions over trade imbalances and market access.
2026-10-12