Yuan Trades in Narrow 6.77–6.79 Band Against Dollar
The People's Bank of China (PBOC) continued to anchor the renminbi in a narrow range against the US dollar through July 2026, with the currency trading consistently between 6.77 and 6.79 per dollar — a zone that has held despite renewed upward pressure on the greenback following Federal Reserve policy signals. The PBOC's reference midpoint rate has provided a steady daily reference point, with the onshore yuan closing at 6.7650 on several sessions in late June and early July.
Central Bank Defends Stability
PBOC Governor Pan Gongsheng has repeatedly affirmed the central bank's commitment to maintaining the yuan at a "reasonable and balanced level," emphasizing that China possesses the confidence, conditions, and capability to ensure foreign exchange market stability. At the Lujiazui Forum in June, Pan outlined a six-pillar reform agenda aimed at deepening financial market opening while preserving macroprudential oversight.
Broader International Context
China's currency management comes amid a complex global backdrop. Non-dollar currencies have generally depreciated as the US Dollar Index strengthened, yet the yuan has demonstrated notable resilience relative to many emerging market peers. The PBOC and the State Administration of Foreign Exchange (SAFE) have pointed to China's solid economic fundamentals, an essentially balanced international payments position, and a deepened foreign exchange market as structural supports for the currency.
Policy Implications
Market analysts note that the 6.77–6.79 band represents a delicate balance: strong enough to signal stability and attract foreign capital inflows into Chinese bonds and equities, yet not so strong as to undermine the competitiveness of Chinese exports. With China's cross-border settlement in RMB already accounting for 52.9 percent of total trade as of H1 2026, the internationalization trajectory continues to provide structural demand for the currency.
Source: PBOC, China Foreign Exchange Trade System, July 2026; PBOC Governor Pan Gongsheng, Lujiazui Forum, June 2026