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EconomyChina Economy

China’s offshore yuan hits 3-year high as Beijing signals policy support

Politburo’s pledge to stabilise growth and boost capital markets helps drive rally, reinforced by days of relatively strong reference rates by the central bank

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The Communist Party’s Politburo has vowed to step up macroeconomic policy support and enhance the resilience of capital markets for the rest of the year. Photo: Getty Images
Sylvia Main Shanghai

China’s offshore yuan rose to a fresh three-year high on Friday after the central bank set the currency’s daily fixing stronger than 6.79 per US dollar for three straight days and a high-level meeting signalled further policy support.

On Friday, the People’s Bank of China set the yuan’s midpoint, or the daily fixing rate, at 6.7894 per US dollar, marking the third straight session above 6.79. The level was marginally weaker than Thursday’s 6.7892, which was the strongest level since February 2023.

Following the move, the offshore yuan extended its rally to 6.7433 by early Friday afternoon, its strongest level since February 2023, according to Chinese financial data provider Wind.

The offshore yuan also strengthened on Thursday after the Communist Party’s Politburo, at a meeting held the same day, vowed to step up macroeconomic policy support and enhance the resilience of capital markets for the rest of the year. The pledge signalled Beijing’s intention to stabilise growth amid a recent slowdown in economic activity and rising volatility in global markets.
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