The yuan has hit its strongest level against the USD in four years, yet China's trade surplus is on track to break the 2025 record of 1,200 billion USD. The article argues that the nominal gain has not erased the price advantage built up through domestic deflation, as the yuan's real effective exchange rate (REER) remains about 15% weaker than four years ago. The REER fell 19% from April 2022 to June 2025, and the IMF estimated the yuan was undervalued by 12-21% in 2025. Weak domestic demand, with fixed-asset investment down 7.2% in nine months, pushes goods abroad: exports rose 36.3% in September, the monthly surplus reached 133.5 billion USD, and the nine-month surplus totalled 938.1 billion USD. AI-related high-tech goods and autos are now driving growth and are less sensitive to exchange rates, while exports to the US rose 39.6% from a low base last year.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Nhân dân tệ mạnh nhất 4 năm vẫn chưa đủ đắt để hãm cỗ máy xuất khẩu
Read the original on Vietstock ↗
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yuanexchange ratesChinaexports
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Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 101.70 |
| Change that session | -0.28% |
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