Yuan exchange rate has been stable for months

Since the latest round of US tariff hikes against China that entered into force on May 10, the yuan’s exchange rate has held at a rate of about 6.9 yuan to the dollar. Yuan’s dollar exchange rate is about the same as it was at the start of the year, but has gained about 2 % against the euro over the same period.

BIS figures show that the yuan’s real effective (trade-weighted) exchange rate (REER) in June was down 1 % from the end of 2018 and off 3 % from a year earlier.

Yuan REER, dollar-yuan, euro-yuan exchange rates

Sources: BIS and Macrobond.