FX.co ★ Yuan hits 32‑month high amid strong Chinese exports

The Chinese yuan has strengthened against the US dollar to its highest level in 32 months. According to Reuters, as of January 12, 2026, one dollar was trading at 7.0108 yuan. In 2025, the yuan advanced 4.5% against the US dollar, its best performance since 2022, driven by large‑scale conversion of exporters’ foreign‑currency receipts at year‑end.

The yuan’s appreciation reflects strong export activity from China. In December 2025, the renminbi reached a 14-month high of 7.06 yuan per dollar. The rise was driven by seasonal demand from exporters converting foreign‑currency revenues. The trend of the yuan strengthening is expected to spread through 2026, indicating China’s solid position in global markets.

The People’s Bank of China also supported the yuan’s rise: in October 2025, the regulator set the exchange rate at 7.0968 yuan per dollar, the highest since October 2024. This policy reflects the central bank’s confidence in economic dynamics and its ability to bolster the national currency. A stronger yuan is beneficial for Chinese consumers’ purchasing power but may complicate export conditions.