FX.co ★ Offshore Yuan Extends Decline

The offshore yuan has depreciated to approximately 7.21 against the US dollar, continuing its downturn from the previous session. This movement follows China's recent announcement of monetary easing initiatives aimed at bolstering economic growth. The People's Bank of China (PBoC) revealed plans to cut key lending rates by 10 basis points and lower the reserve requirement ratio by 50 basis points, with the goal of injecting an estimated 1 trillion yuan into the financial system. Concurrently, there is renewed optimism in international relations, as Chinese Vice Premier He Lifeng is set to hold discussions with US Treasury Secretary Bessent and US Trade Representative Greer. These talks aim to alleviate trade tensions that have unsettled global markets and disrupted international commerce. Since the beginning of the year, the Trump administration has enforced tariffs of up to 145% on imports from China, prompting reciprocal duties from Beijing of up to 125% on certain American products. Should these talks proceed, they would represent the first high-level interaction between the two nations since Chinese Vice President Han Zheng attended President Trump's inauguration in January.