China's central bank, the People's Bank of China (PBOC), has been actively strengthening the yuan's reference rate against the dollar. On September 15, 2026, the PBOC set the rate at 6.7670 per dollar, which represented its fifth consecutive day of strengthening. This move marks the longest such streak since December 2025 and is viewed as an effort to counter the dollar's recent appreciation and ensure currency stability ahead of the upcoming summit between Chinese President Xi Jinping and US President Donald Trump later this month. Analysts see this as a clear policy signal to avoid currency volatility becoming another point of contention in bilateral relations.
Today, September 18, 2026, the yuan's midpoint against the U.S. dollar strengthened further to 6.7580, marking its highest level since February 3, 2023. This continued strengthening suggests a deliberate guidance from the PBOC. Newsquawk anticipates the USD/CNY mid-point to be set at 6.7065, a notable strengthening from the previous 6.7580, further underscoring the central bank's proactive stance.
Market observers are interpreting the PBOC's actions as a policy-signaling effort, with Christopher Wong, FX strategist at OCBC, noting that a "broadly stable, or mildly appreciating, yuan would probably be preferable to policymakers at this juncture." Dariusz Kowalczyk, head of cross-asset strategy for Asia at BBVA, echoes this sentiment, expecting a "very slow appreciation of yuan at PBOC fixings to continue until the summit." This sustained strengthening, rather than a one-off adjustment, indicates a strategic approach by Beijing to manage the yuan's value.
