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Yuan breaks 6.74 per dollar, hits 3-1/2-year highs onshore and offshore

Yuan breaks 6.74 per dollar, hits 3-1/2-year highs onshore and offshore

China posted a $74.7 billion Q2 foreign-reserves inflow, its biggest in more than 12 years, as authorities absorbed foreign-currency inflows to moderate the yuan's appreciation near early-2023 highs.

Fact Check
The core claim is strongly corroborated. Tradingeconomics independent market data confirms USD/CNY at ~6.738 on August 17, 2026, near strongest since February 2023, and carries a headline 'Chinese Yuan Hits 3-1/2-year High.' BigGo Finance confirms both onshore (6.7393) and offshore yuan broke 6.74 to a ~3.5-year high. Cryptobriefing corroborates the 6.74 level plus the 12-year-high reserve gauge and FX-absorption framing consistent with PBOC managed-float policy. The 'early 2023' / 'February 2023' strongest-level framing is consistent across sources. The 12-year-high reserve gauge detail is sourced primarily to cryptobriefing but aligns with the described policy context.
Summary

China's foreign reserves recorded a $74.7 billion inflow in the second quarter, the largest quarterly increase in more than 12 years, reinforcing signs that authorities absorbed foreign-currency inflows to slow the pace of yuan appreciation. On August 17, 2026, the yuan traded near 6.74 per dollar after breaking that level in both onshore and offshore markets and reaching roughly three-and-a-half-year highs, close to its strongest level since early 2023. The reserve buildup suggests Beijing is managing inflows to keep the yuan broadly stable while limiting excessive moves, in line with People's Bank of China guidance on market-based pricing and volatility control.

Terms & Concepts
  • Foreign reserves: Central bank-held foreign assets that can be used to manage currency stability and external liquidity.
  • Onshore yuan: The renminbi traded within mainland China, typically under closer official management than offshore trading.
  • Offshore yuan: The renminbi traded outside mainland China, where pricing is generally more market-driven.