FX.co ★ Offshore Yuan Holds Firm

The offshore yuan remained stable, trading at approximately 7.11 per dollar, hovering near a one-week high. This stability comes as the People's Bank of China (PBoC) continues to exert effort in strengthening the currency. On Monday, the PBoC set the midpoint value at 7.0847, which is stronger than both Friday's fix of 7.0875 and the estimated 7.1162. This move underscores the central bank's commitment to stabilizing the yuan. Experts have observed that recent fixings have aligned with the broader trend of the dollar. Meanwhile, the US dollar maintained its strength due to mixed expectations surrounding Federal Reserve policy. In November, the PBoC maintained its benchmark loan prime rates for the sixth straight month, as anticipated by the market, reflecting a reduced urgency for additional stimulus measures. Market participants now shift their focus to the upcoming December Politburo meeting and the Central Economic Work Conference, seeking insight into next year's economic agenda. The government is reportedly aiming for approximately 5% GDP growth in 2026, which may necessitate a more substantial fiscal package. Additionally, there are indications that China is contemplating new initiatives to bolster its ailing property sector.