Chinese Yuan Heads for Best Annual Performance Since 2020, Defying Trade Tensions

The yuan is set for its best year since 2020, up 4% in 2025, boosted by capital inflows, equities, and official support despite trade tensions.

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Chinese Yuan Heads for Best Annual Performance Since 2020, Defying Trade Tensions
Chinese Yuan Heads for Best Annual Performance Since

Bloomberg | The Chinese yuan is poised for its best annual performance in five years, as increasing optimism about China's assets and economy outweighs concerns over US trade tensions. The yuan has strengthened by approximately 4% in 2025, bolstered by official support through daily currency settings, robust capital inflows driven by rising Chinese equities, and a weaker US dollar. Most analysts remain optimistic about the yuan's outlook for 2026, with Goldman Sachs Group Inc. raising its forecasts last month.

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Edited & Reviewed by the Ecopulse Editorial Board 1/26/2026, 14:37:07 UTC
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