China’s central bank fixes yuan midpoint at 6.9414/USD vs 6.9032 previously

China’s central bank fixes yuan midpoint at 6.9414/USD vs 6.9032 previously

China’s Yuan Hits 33-Month High Amid Central Bank Guidance and Dollar Weakness

China’s central bank set the yuan’s daily midpoint rate at 6.9438 per U.S. dollar on Wednesday, marking the strongest level since mid-2023 and reflecting sustained appreciation pressures. This follows months of gradual gains, with the offshore yuan trading at 6.909 per dollar as of early February 2026. The People’s Bank of China (PBOC) has been carefully managing the currency’s strength, adjusting the midpoint to temper rapid movements while aligning with market expectations.

The yuan’s rise coincides with broader de-dollarization trends and waning confidence in the U.S. dollar. Investors are increasingly shifting assets away from the dollar amid concerns over the Federal Reserve’s independence, U.S. fiscal sustainability, and policy uncertainties under the Trump administration. Billionaire investor Ray Dalio has warned of a “pre-breakdown phase” for the U.S. monetary system, citing risks of debt monetization and currency erosion.

Onshore and offshore yuan markets have also benefited from seasonal corporate activity. As the Lunar New Year approaches in mid-February, exporters are accelerating foreign exchange settlements to meet payment obligations, boosting demand for the yuan. However, analysts note that this support may wane as the holiday nears, potentially easing upward pressure on the currency.

The PBOC’s recent interventions highlight its cautious approach to managing appreciation. While the central bank set the midpoint at 6.9843 per dollar on January 26, 2026—a 32-month high—it has increasingly deviated from market forecasts to control volatility. Barclays analysts anticipate further measures to stabilize the yuan, including policy adjustments to counter prolonged appreciation pressures.

For investors, the yuan’s trajectory remains tied to global dollar dynamics and China’s economic policies. With the U.S. dollar under sustained pressure and Chinese corporate demand providing near-term tailwinds, the yuan’s strength is likely to persist, though central bank interventions will play a critical role in shaping its medium-term path.