The Chinese yuan (renminbi) slipped 23 pips to 7.1405 per U.S. dollar in its daily central parity rate, as determined by the China Foreign Exchange Trade System. This benchmark reflects a weighted average of quotes from market-makers ahead of each trading session.
Though the spot FX market allows daily fluctuations of up to ±2% around this rate, the modest move highlights that China’s currency remains under soft pressure amidst mixed economic performance domestically and against a relatively stabilized U.S. dollar .
Global sentiment and policy cautiousness are prominent factors:
A recent easing in global trade tensions and a shift toward reducing reliance on the U.S. dollar (de-dollarization) have prompted JPMorgan to revise its year-end forecast, expecting the dollar-to-yuan rate to improve to 7.15, and potentially strengthen to 7.10 by mid-2026 .
Export strategies also play a role:
Exporters have sold a record $132.5 billion in dollar-yuan options during the first half of 2025. This reflects their strategy to profit off low currency volatility while minimizing exposure to unexpected Renminbi fluctuations .
Multinationals may face higher local input costs as the yuan weakens, affecting profit margins.
Exporters, however, may benefit by earning more dollars per yuan sold.
Currency traders could expect a gradual downtrend in USD/CNY as trade relations thaw and central bank-guided stability persists.
China’s central parity system is governed by the People’s Bank of China and the Foreign Exchange Self-Disciplinary Mechanism, incorporating “counter-cyclical factors” to mitigate exaggerated market swings .