The offshore yuan strengthened to about 6.7 per dollar, marking its highest level in four years, as the People’s Bank of China has methodically raised the daily reference rate for eight trading sessions running. The currency’s conspicuous rally comes ahead of the US-China summit in Washington on September 24, when Xi Jinping and Donald Trump are due to discuss trade ties.

The yuan is on track to close higher for a seventh consecutive quarter, cementing its status as Asia’s strongest currency. Strength in exports and corporate sales of foreign currency receipts have supported the move. Beijing is simultaneously expanding its independent financial infrastructure. The Shanghai clearing house has added the Singapore and New Zealand dollars and the Thai baht for settlements. In the first session alone, a dozen banks executed nearly one billion yuan of trades, broadening use of the renminbi in cross‑border flows.

The rally is paradoxical: the yuan is shrugging off external pressure and internal strains alike. It has held firm despite a broader dollar rebound after recent Fed moves. Behind the veneer of strength, however, domestic demand is plunging. Chinese banks extended just 60 billion yuan of new loans in August against 400 billion yuan expected, with total credit growth slowing to a record low 4.9% year‑on‑year.