Global financial institutions are betting on a stable yet upward trajectory for the Chinese yuan (CNY) in 2026, with the currency recently breaching the 7.0-per-USD mark—a sign of growing confidence in Asia's economic powerhouse. 📈
ING, a leading financial services group, highlighted the People's Bank of China's (PBOC) proven ability to stabilize exchange rates during market turbulence. "In 2025, the PBOC demonstrated both resolve and resources to maintain stability," their report stated, emphasizing policy credibility as a key driver.
Domestic analysts echo this optimism. Industrial Securities argues the yuan's rise is just starting, fueled by:
👀 A potential Federal Reserve rate cut cycle
💵 Narrowing China-U.S. interest rate gaps
🌊 Returning capital inflows after 2025's volatility
Unlike past trends, this appreciation reflects strong internal dynamics—like surging foreign investment and increased demand for yuan conversion—rather than just reacting to dollar weakness.
