FX.co ★ Offshore Yuan Holds Near a Multi-Year High

The offshore yuan traded near 6.75 per dollar on Wednesday, hovering close to its strongest level since February 2023, after the People's Bank of China announced new measures to boost the global use of the Chinese currency. The central bank said it will broaden access to yuan liquidity through its Foreign and International Monetary Authorities (FIMA) repo facility, allowing foreign central banks, sovereign wealth funds, and other official institutions to borrow yuan against their holdings of Chinese government bonds and other eligible securities.

The move represents another step in Beijing’s long-running effort to internationalize the yuan and reduce the global financial system’s dependence on the US dollar. In line with this objective, China’s latest five-year plan committed to advancing yuan internationalization, and President Xi Jinping has repeatedly underscored the goal of establishing the yuan as a strong and influential global currency.