China Central Bank Sets Yuan Midpoint at 32 Month High While Signaling Resistance to Faster Gains
The People's Bank of China lifted the yuan midpoint to a 32-month high on January 26 but set the rate weaker than expected to manage appreciation pressures.
Insights:
The People's Bank of China (PBOC) established the official midpoint guidance for the currency in China 
CNat 6.9843 per dollar on January 26, 2026. This fixing represents the strongest level since May 17, 2023, marking a significant 32-month high. However, the central bank simultaneously signaled resistance to rapid appreciation by setting the rate 551 pips weaker than a Reuters estimate of 6.9292. This weak-side deviation stands as the largest since such data became available in 2022, reflecting a policy strategy to manage upward pressure on the US Dollar / Chinese Yuan exchange rate.
CNat 6.9843 per dollar on January 26, 2026. This fixing represents the strongest level since May 17, 2023, marking a significant 32-month high. However, the central bank simultaneously signaled resistance to rapid appreciation by setting the rate 551 pips weaker than a Reuters estimate of 6.9292. This weak-side deviation stands as the largest since such data became available in 2022, reflecting a policy strategy to manage upward pressure on the US Dollar / Chinese Yuan exchange rate.
