The People's Bank of China (PBOC) set the yuan's central parity rate higher for the fifth consecutive day, the longest streak since December 2025, in an attempt to support the currency against a strengthening dollar ahead of the September 24 meeting between Xi Jinping and Donald Trump.
On September 15, 2569, at 11.31:5 AM, Bloomberg News reported that the People's Bank of China (PBOC) set the yuan's central parity rate higher for the fifth consecutive day to help ease pressure from a strengthening dollar ahead of the summit between Chinese President Xi Jinping and US President Donald Trump, scheduled for September 24.
The PBOC set the yuan's central parity rate at 6.7670 yuan per dollar on Tuesday, marking the longest continuous strong central parity rate setting since December 2568. However, this level is still 602 pips weaker than the average forecast by analysts in a Bloomberg survey.
Under China's exchange rate management system, the yuan traded domestically can fluctuate by no more than 2% from the daily central parity rate set by the PBOC.
The consistently stronger central parity rate of the yuan reflects Chinese authorities' efforts to mitigate the impact of the dollar's recovery. The gradual appreciation of the yuan also signals China's desire to limit currency volatility ahead of the summit between Chinese and US leaders.
Christopher Wong, a foreign exchange strategist at OCBC, stated that this move may have some policy implications ahead of the Trump-Xi Jinping meeting. At this time, Chinese authorities likely want to see the yuan stable or slightly stronger to avoid currency issues becoming another source of tension between the two countries.
The yuan, both in onshore and offshore markets, showed little movement on Tuesday, while the Bloomberg dollar index rose 0.1% after the previous day's biggest gain in nearly three months.
Dariusz Kowalczyk, Head of Cross-Asset Strategy for Asia at BBVA, said that today's lower USD/CNY central parity rate confirms that the PBOC wants the yuan to stabilize and gradually appreciate before the summit. He expects the PBOC to continue guiding the yuan towards slow appreciation through continued central parity rate adjustments until the meeting.
Reference: bloomberg.com
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