FX.co ★ Offshore Yuan Holds Firm at Multi-Year High

The offshore yuan traded steadily around 6.74 per dollar on Friday, holding near its strongest level since early February 2023, supported by Beijing’s push to accelerate the currency’s internationalization. An increasing number of Chinese commercial banks have added roughly a dozen currencies to their direct yuan settlement and clearing networks, including the Thai baht, Brazilian real, and Kazakhstani tenge. This latest step is expected to help Chinese firms further reduce their reliance on the US dollar as the country’s trade links and overseas investments expand, while also advancing President Xi Jinping’s goal of building a “powerful currency.” At the same time, investors looked ahead to upcoming trade data after China announced a new round of retaliatory measures against the US, including tighter export controls on drones, sanctions on seven American companies, and its first national security investigation related to foreign trade.