News about yuan

China's economy grew 4.5% in the July–September quarter from a year earlier, faster than the 4.3% pace in April–June, driven by strong exports and moving it closer to the 4.5%–5% annual target. Domestic demand remains weak, weighed down by a prolonged property slump, and economists warn the headline growth figure increasingly masks disparities across industries, regions and households. Exports rose 36% last month, and the trade surplus reached $938 billion from January to September, putting China on track to surpass last year's record $1.2 trillion. The EU, which runs a trade deficit with China of more than $1.1 billion a day, is pressing for rebalancing after the two sides agreed to roughly halve Chinese hybrid vehicle imports. Some partners argue an undervalued yuan has added to the surplus, a claim China's central bank rejects.

China said its economy grew 4.5% from a year earlier in the July-September quarter, faster than the 4.3% pace in the previous quarter, driven by robust exports. Domestic demand remained weak, as a years-long property downturn has squeezed household wealth and driven up savings. Exports grew 36% last month, and the trade surplus reached $938 billion from January to September, on track to surpass last year's record $1.2 trillion. The European Union, where the deficit with China exceeds $1.1 billion a day, is pressing Beijing to rebalance trade, as exports to the EU rose 16% in the first nine months of the year. Analysts warn that this export-reliant growth model has created limited job gains, while the yuan is accused of being undervalued.

Asian share markets mostly slipped Monday on worries about AI's huge funding needs, though Chinese data beat forecasts, with third-quarter GDP growing 4.5% and retail sales up 1.1%. Indonesia's stock index fell 5% to its lowest since 2020 after MSCI said it was considering moving the country from emerging-market to 'standalone' status. Oil fell after Trump waived some Russia sanctions, with Brent down 1.8% to $107.83 a barrel and the 10-year Treasury yield dropping 4 basis points to 5.0525%. The yuan strengthened to 6.6828 per dollar, its firmest since July 2022, while the euro dipped toward its 16-month low. Investors are awaiting this week's earnings from Meta, Tesla and other companies.

Asian currencies traded flat to slightly higher on Monday while the dollar held steady after a 0.4% weekly fall that ended a four-week winning streak. The yuan reached its strongest level since July 2022, with onshore USD/CNY down 0.1% to 6.6816, after China's third-quarter GDP grew 4.5% year on year, beating the 4.4% forecast. September industrial output rose 5.5% and retail sales 1.1%, but property investment fell 20.6% in the first nine months and fixed-asset investment dropped 7.2%, which could limit the yuan's gains. The yen was near 158 per dollar amid intervention fears, while the rupee posted its strongest weekly performance in nearly four years after Reserve Bank of India measures to curb dollar demand. The Australian dollar gained 0.4% and the won strengthened 0.2% against the dollar.

On October 8, the People's Bank of China (PBOC) issued a document on the renminbi exchange rate, rejecting claims that the currency is deliberately undervalued to gain an export advantage. China's trade growth accelerated to 15.3% in the first quarter, 18.3% in the second and 22.3% in the third, the fastest for the same period in five years, with equipment manufacturing driving nearly 90% of export growth. Exports of integrated circuits rose 99.1%, electric vehicles 72.3%, lithium-ion batteries 36.4% and wind turbine parts 22.4%. Experts attribute China's competitiveness to technology, quality and logistics rather than price, and the article cites PBOC data showing China's export share rising in periods when the RMB appreciated, suggesting the exchange rate alone cannot explain export performance.

In an interview with Beijing Review, Zong Liang, a senior researcher at the World Finance Forum, argues that the renminbi is not deliberately undervalued. He notes that the currency weakened until early April 2025 before recovering, and broke through 6.9 per dollar in February 2026, its highest level since April 2023. The PBOC says the RMB appreciated about 9% against the U.S. dollar since the start of 2025, yet three effective exchange rate indices edged lower because the dollar index fell 9.4%. Forex reserves reached $3.3579 trillion by late 2025, up 5%, mainly due to valuation effects rather than large-scale purchases. He adds that the record current account surplus reflects the gap between domestic saving and investment, not the exchange rate alone.