FX.co ★ Chinese yuan soars amid year-end seasonal conversion

The Chinese yuan strengthened to a 14-month high, reaching 7.06 against the dollar. This rise in value is driven by a strong fixed rate set by the People's Bank of China and seasonal demand for the currency from exporters. As the year comes to a close, companies are actively converting currency for financial reporting purposes, which creates additional demand for yuan.

Analysts at Nanhua Futures noted that the currency's appreciation coincides with the typical annual cycle, where exporters sell dollars and purchase yuan. On the Moscow Exchange, the yuan was trading at approximately 11.26 rubles, with no significant changes.

The yuan's strengthening occurs against the backdrop of pressure from Xi Jinping on Chinese officials, whom he accuses of inflating economic indicators for personal advancement. The Chinese leader emphasized the necessity of realistic plans aimed at tangible and impartial growth, rather than creating vanity projects.