FX.co ★ Offshore Yuan Extends Rally to Firmest Since 2023

The offshore yuan strengthened beyond 6.89 per dollar on Thursday, extending its rally for a sixth consecutive session and marking its strongest level since May 2023, as China continues efforts to enhance the currency’s global role. President Xi Jinping has repeatedly emphasized his goal of transforming the yuan into a true global reserve currency—widely used in international trade, investment, and foreign exchange markets, and held in substantial amounts by central banks worldwide. The offshore yuan has now risen to its highest level against the dollar in nearly three years, with the greenback losing 6% against the renminbi since the beginning of last year. However, the currency’s advance was capped after the People’s Bank of China reaffirmed its “moderately loose” monetary policy stance, stressing the need to maintain stable growth and support a gradual recovery in prices. The policy confirmation came just ahead of data showing annual consumer inflation easing to a three-month low of 0.2% in January 2026, while producer price deflation narrowed to 1.4%, its smallest decline in one and a half years.