This article examines last week’s decisive yuan moves: the onshore and offshore CNY pierced 6.90/USD, the PBoC set a notably weaker daily fixing to temper appreciation, MUFG flagged an easing bias, and a separate yuan liquidity squeeze in Russia drove local funding rates sharply higher. Practical trading implications and risk-management steps follow.

The yuan strengthened this week—CNH touched ~6.93 per USD—driven by seasonal FX demand, improved Sino‑U.S. sentiment and measured PBOC fixing. A concurrent yuan liquidity squeeze in Russia, where overnight borrowing costs spiked, underscores cross‑border stresses that are influencing exchange‑rate dynamics.

Over the past week China has signalled a managed path toward yuan appreciation: the PBOC set firmer central parity levels while using softer daily fixings to moderate the pace, offshore CNH hit a 32-month high near 6.97/USD, and Xi reiterated renminbi internationalization. These concrete actions and data points matter directly for exchange-rate traders, exporters and hedgers.

Over the past week the People’s Bank of China adjusted its USD/CNY mid‑point twice—first a softer fixing on Jan 22 (7.0014) then a firmer pivot on Jan 23 (6.9929), the strongest since May 2023. Combined with exporters’ heavy pre‑Lunar New Year FX conversions and onshore/offshore dynamics, these moves have driven renewed yuan appreciation and revealed the PBoC’s calibrated approach to exchange‑rate management.

The offshore yuan (CNH) climbed to a 32-month high near 6.96 per USD amid record trade surplus, stronger PBoC midpoint fixings and lower hedging costs. Policy tweaks and upbeat export flows have prompted revisions to near-term forecasts, with major banks now penciling in further yuan strength into early 2026.

Offshore yuan (CNH) strengthened toward 6.98 against the dollar in early January as exporters converted dollars ahead of Lunar New Year and sentiment improved. The PBOC used its daily midpoint fixing to moderate gains (e.g., a 7.0173 fixing vs. a 6.9730 estimate), signaling controlled appreciation. Stimulus-led credit growth and slowly rising inflation support a gradual yuan strengthening to the mid-6.8s over 2026 according to major banks.