How Does China's Daily Yuan Fixing Work, and Why Does the Yuan Barely Move?
Direct answer
China's daily yuan fixing in brief
Every trading day at 9:15 a.m. Beijing time, the China Foreign Exchange Trade System, on behalf of the People's Bank of China, publishes a central parity rate (the "fix") for the dollar against the yuan. Onshore spot trading may then move at most 2% above or below that rate. The fix is based on banks' quotes that refer to the previous close, demand and supply, and moves in other major currencies, but the central bank can lean on it, and on dollar liquidity, when it wants a slower move. Result: since 2021 USD/CNY has moved about 0.15% a day on average, less than half as much as EUR/USD.
- Fix published by CFETS for the PBOC at 9:15 a.m. Beijing time
- Onshore USD/CNY may trade within ±2% of the fix (since March 17, 2014)
- Average daily move 2021–2026: CNY 0.15%, EUR/USD 0.34%, USD/JPY 0.43% (FRED, UXS calc)
- Yuan at 6.648 per dollar on Nov 2, 2026, its strongest since May 2022
- PBOC raises FX reserve requirement from 4% to 6% from Nov 15, 2026 to slow the rise
Next to EUR/USD or USD/JPY, the yuan looks strangely calm. That is by design: it trades around a reference rate published every morning.
What people on X are asking
On November 2, 2026 a markets account noted that the yuan had reached its strongest level against the dollar since June 2022, up about 5% for the year, and that Beijing was setting a weaker daily fix than expected to slow it down. A day later another post said the central bank was raising banks' foreign-currency reserve requirement and had set the fix 661 pips weaker than market estimates. Earlier in the year a third account summed up the mechanism: the yuan is not a free-market rate, the central bank sets a midpoint each morning, and the currency "can only move 2% either side of it".
What people in the thread said
- @macro_fengshui argued the reserve-ratio move targets exporters converting more dollars into yuan as it rose (citing about 57% in July and 65% in September). We could not verify those ratios officially; the motive, breaking a self-reinforcing loop, matches the official explanation below.
These are community comments, summarised in our words; the data and sources below come first.
The fact-checked answer
The daily routine. Under a 2014 PBOC circular published by China's foreign exchange regulator, the China Foreign Exchange Trade System (CFETS) announces the dollar–yuan mid-rate at 9:15 a.m. on each working day. It is computed from quotes collected from market-making banks before the open; the highest and lowest are dropped and the rest averaged with weights. Since March 17, 2014, onshore spot trading may move up to 2% either side of that rate (PBOC Announcement No. 5, 2014), so the third post is correct.
What the banks are told to quote. On August 11, 2015 the PBOC said market makers' quotes should refer to the previous day's closing rate, together with supply and demand and moves in major currencies. The yuan stepped down with it: FRED's noon rate went from 6.2094 to 6.3232 per dollar that day, a 1.8% jump. The fix now follows the market more closely, but the authorities can still shade it.
Checking the November 2026 posts. On FRED's daily series the dollar bought 6.648 yuan on November 2, 2026, the strongest yuan reading since May 4, 2022 (6.6079). From 6.9931 at the end of 2025 that was a 5.2% gain for the yuan, so "about 5%" is right; FRED puts the previous stronger level in early May rather than June 2022, a small gap that can come from using onshore closes instead of New York noon rates. The reserve-requirement change is confirmed: Xinhua reported on November 3 that the PBOC will raise banks' foreign-exchange reserve requirement ratio from 4% to 6% from November 15, its first increase in nearly five years, to ease upward pressure on the yuan. An economist quoted there estimated it freezes about $20–25 billion of dollar liquidity. The exact 661-pip gap between the fix and analysts' estimates comes from market surveys we could not access, so we have not verified that number.
UXS chart
Dollar–yuan exchange rate since 2014 (yuan per US dollar)
Yuan per US dollar (USD/CNY): latest
6.6760
November 6, 2026
Highest in chart period
7.3499
April 9, 2025
Lowest in chart period
6.0402
January 14, 2014
Change over 1 year
-6.2%
vs November 6, 2025
Year by year: Yuan per US dollar (USD/CNY)
Computed by UXS from the same data as the chart. Tap a column header to sort. * = year to date (latest data November 6, 2026).
| 2026* | 6.6760 | -4.5% | 6.9965 | 6.6480 |
| 2025 | 6.9931 | -4.2% | 7.3499 | 6.9931 |
| 2024 | 7.2993 | +2.8% | 7.2993 | 7.0106 |
| 2023 | 7.0999 | +2.9% | 7.3430 | 6.7010 |
| 2022 | 6.8972 | +8.2% | 7.3048 | 6.3084 |
| 2021 | 6.3726 | -2.3% | 6.5716 | 6.3435 |
| 2020 | 6.5250 | -6.3% | 7.1681 | 6.5208 |
How calm is "calm"? We compared average daily moves on FRED's noon rates.
Average daily move: yuan vs euro vs yen
Computed by UXS from FRED DEXCHUS, DEXUSEU and DEXJPUS daily noon rates, January 2021 to early November 2026. Tap a column header to sort.
| USD/CNY | 0.15% | 3.9% | 1.6% |
| EUR/USD | 0.34% | 7.3% | 2.2% |
| USD/JPY | 0.43% | 9.8% | 4.2% |
Why the authorities care. In October 2026, Xinhua reported, the PBOC said it would act against sharp short-term swings and herd behaviour, without setting a target level. Offshore yuan (CNH), traded in Hong Kong, has no band and can move further than onshore CNY.
UXS decision diagram
Reading a yuan fixing headline
Text version of the diagram
- Is the fix much weaker or stronger than surveys of model estimates? If yes: Treat it as a policy signal about speed, not a target level
- Is onshore spot close to the edge of its 2% band? If yes: Expect more official tools if pressure continues
- Has the PBOC changed the FX reserve ratio or other liquidity tools? If yes: The authorities want to slow the trend; size positions for a pause
- Otherwise: Otherwise the move is mostly market-driven: dollar trend, trade flows, rate gaps
Diagram drawn by UXS. A simplified decision aid for education, not a recommendation.
Decision helper
| If you trade… | Keep in mind |
|---|---|
| USD/CNH with a retail broker | Offshore rate, no band, spreads can widen in stress |
| Asian currencies (AUD, KRW) | Often react to the morning fix |
Checklist
- Check the fix at 9:15 a.m. Beijing time before trading yuan.
- Compare it with the previous close and the dollar's overnight move.
- Note whether you trade onshore CNY or offshore CNH.
- Watch for reserve-ratio or liquidity announcements from the PBOC.
- Use stops sized for policy surprises like August 2015.
Common mistakes
- Treating low daily volatility as low risk: step changes happen.
- Confusing CNH quotes on a trading platform with the onshore band.
- Reading every weak fix as a devaluation plan.
For other managed currencies, see how the Hong Kong dollar peg works and how Japan intervenes for the yen; for China's role in other markets, why the Australian dollar moves with iron ore and China.
FAQ
What is the yuan fixing?
The daily central parity rate for USD/CNY published by CFETS for the People's Bank of China at 9:15 a.m. Beijing time.
How far can the yuan move from the fix?
Onshore spot can trade up to 2% above or below the day's fix, a band in place since March 17, 2014.
What happened on August 11, 2015?
The PBOC changed how the fix is quoted, and the dollar–yuan rate jumped about 1.8% in a day on FRED data.
Why did China raise the FX reserve requirement in November 2026?
To slow the yuan's rise; the ratio goes from 4% to 6% from November 15, 2026.
Is the yuan pegged to the dollar?
Not strictly; it is a managed float around a daily fix, with policy tools to slow fast moves.
Does offshore yuan have a band?
No. CNH in Hong Kong trades freely.
Sources
- People's Bank of China: Announcement on improving the central parity quotation (Aug 11, 2015)
- PBOC Public Announcement [2014] No. 5: band widened to 2% (via gov.cn)
- SAFE: PBOC circular on interbank trading rates and mid-rate formation
- Xinhua via gov.cn: PBOC raises FX reserve requirement ratio to 6% (Nov 2026)
- FRED: China / US foreign exchange rate (DEXCHUS)
Facts checked November 11, 2026. X posts are cited as evidence of the question, not of the answer.