China's yuan fixing survey range from 7.1282 to 7.1353

China's yuan fixing survey range from 7.1282 to 7.1353

China's central bank and finance ministry have recently announced a new mechanism for issuing sovereign debt overseas, aiming to bolster the yuan's global role. This initiative comes amidst growing volatility in the U.S. dollar market due to President Donald Trump's trade policies and Federal Reserve interference [1]. The yuan fixing range for September 2, 2025, is from 7.1282 to 7.1353.

In a joint meeting, Liao Min, China's vice-minister of finance, and Zou Lan, deputy governor of the People's Bank of China, emphasized the need for coordinated fiscal and monetary policies to stabilize markets and navigate the complex economic environment [1]. While specific details about the bond issuance mechanism were not disclosed, the meeting underscored the importance of these coordinated efforts.

Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, noted that China's policy to internationalize the yuan is well-established. Recent calls from Pan Gongsheng, China's central bank governor, for a global payment system to reduce dependence on a single currency further support this initiative [1].

With the yuan fixing range from 7.1282 to 7.1353 on September 2, 2025, China's efforts to enhance its bond issuance mechanism could contribute to a more stable and diversified global financial landscape. The increased issuance of offshore yuan-denominated treasury bonds is expected in the future, aligning with China's broader strategy to promote the yuan's international use [1].

In related news, China's foreign exchange reserves rose by USD 29.9 billion to USD 3.322 trillion in August 2025, marking the highest level since December 2015. The yuan strengthened 0.87% against the dollar in August, while the dollar fell 2.19% against a basket of major currencies. Gold reserves stood at 74.02 million fine troy ounces at the end of August, up from 73.96 million ounces at the end of July [2].

The State Administration of Foreign Exchange in China also increased the foreign-exchange quota for qualified domestic institutional investors (QDII) to USD 170.9 billion at the end of June from USD 167.8 billion [2]. This marks the first increase in the amount approved investors can allocate to overseas assets since May 2024, as authorities move to ease capital outflow controls.

References:
[1] https://www.scmp.com/economy/china-economy/article/3324341/china-eyes-honing-its-bond-issuance-mechanism-boost-yuans-global-role?utm_source=rss_feed
[2] https://tradingeconomics.com/china/foreign-exchange-reserves