China’s yuan fixing estimated at 6.9027, survey shows

China’s yuan fixing estimated at 6.9027, survey shows

China’s Yuan Fixing Estimated at 6.9027, Survey Shows

The Chinese yuan’s daily reference rate fixing was estimated at 6.9027 per U.S. dollar in early March 2026, according to recent market surveys, reflecting continued strength in the currency amid evolving central bank measures. This level marks a significant appreciation trajectory, with the yuan nearing a 33-month high against the dollar.

To manage the currency’s rapid gains, the People’s Bank of China (PBOC) announced on March 2 the removal of a 20% reserve requirement on foreign-currency forward contracts, effective immediately. This policy shift reduces the cost for market participants to hedge against the yuan via derivatives, aiming to curb excessive appreciation while maintaining exchange rate stability. The PBOC emphasized its commitment to keeping the yuan at "reasonable, equilibrium levels" and improving foreign exchange (FX) risk management services for businesses.

The move follows months of intervention, including weaker-than-expected daily reference rate fixings, which historically limit the yuan’s intraday movement by 2%. Analysts note that the PBOC’s actions signal concern over the currency’s strength, which could undermine export competitiveness and exacerbate domestic deflationary pressures. Fiona Lim, a strategist at Maybank, described the policy as a tool to "slow the pace" of appreciation, clarifying that the central bank does not oppose gains outright but seeks to manage their speed.

The offshore yuan (CNH) traded at 6.8585 per dollar on March 4, down 0.2% from its recent peak, reflecting market responses to the PBOC’s measures. The central bank has historically adjusted reserve requirements since 2015, last employing the tool in 2022 to counter depreciation pressures.

With the yuan’s trajectory remaining a focal point for global markets, the PBOC’s balancing act between stability and controlled appreciation will likely shape near-term FX dynamics. Investors are advised to monitor policy adjustments and broader macroeconomic indicators for further clues on the currency’s direction.