FX.co ★ Offshore Yuan Slides as PBOC Acts to Curb Rally

The offshore yuan fell about 0.3% to 6.66 per dollar on Tuesday, pulling back from a more than four-year high hit in the previous session, after the People’s Bank of China moved to slow its rapid appreciation by raising the foreign exchange reserve requirement ratio. The central bank announced a 2-percentage-point increase in the ratio, to 6% from 4%, effective November 15. The measure is designed to drain foreign currency liquidity from the onshore interbank market, making it more expensive for financial institutions to hold US dollars and discouraging commercial lenders from selling them, thereby tempering the yuan’s recent gains.

The yuan’s rally has been supported by strong export performance, with shipments jumping 36.3% year-on-year to USD 447.18 billion in September 2026, the fastest annual growth in seven months. Robust global demand for electronics and semiconductors has continued to buoy exports, helping the currency appreciate by about 5% so far this year.