Chinese Yuan Hits 3.5-Year High Ahead of Trump-Xi Summit

The People's Bank of China eased restrictions on currency gains by setting a stronger midpoint rate, driving the Chinese yuan to a 3.5-year high of 6.6950 per US dollar on September 21.

This currency appreciation follows the conclusion of preparatory talks in New York between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. The move precedes a summit between US President Donald Trump and Chinese President Xi Jinping scheduled for September 23-25, where the leaders intend to discuss supply chains, artificial intelligence, trade relations, and Middle East tensions.

Analysts suggest the central bank's action may be a policy-managed stability measure designed to create a more constructive environment for the summit by reducing US accusations of competitive depreciation, rather than a fundamental shift in the currency's value.