---
title: "Offshore Yuan Set for Fourth Monthly Gain"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/274240307.md"
description: "The offshore yuan has strengthened to approximately 6.94 per dollar in January, marking its fourth consecutive monthly gain. This increase is driven by heightened currency demand from exporters ahead of the Lunar New Year, as firms convert foreign earnings into yuan for bonuses and expenses. The currency's rise is supported by a positive domestic outlook, a trade surplus, and renewed investor interest. However, the People's Bank of China has limited appreciation by setting a weaker daily reference rate. The US Treasury has described the yuan as \"substantially undervalued\" and urged China to allow a more orderly strengthening of the exchange rate."
datetime: "2026-01-30T02:48:30.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/274240307.md)
  - [en](https://longbridge.com/en/news/274240307.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/274240307.md)
---

# Offshore Yuan Set for Fourth Monthly Gain

The offshore yuan strengthened to around 6.94 per dollar in January, extending gains for a fourth consecutive month, as exporters ramped up currency demand ahead of the awaited holiday.

Chinese firms typically accelerate the conversion of foreign earnings into yuan in the weeks before the Lunar New Year to fund employee bonuses and seasonal expenses.

The currency has also been supported by an improving domestic outlook, underpinned by China’s sizable trade surplus, renewed investor interest in local equities, and rising expectations of additional policy stimulus.

However, the gains have been partially restrained by the People’s Bank of China, which has set its daily reference rate weaker than market expectations since late November, signaling an intent to curb excessive appreciation.

On Thursday, the US Treasury labeled the yuan “substantially undervalued” and called on China to allow the exchange rate to strengthen in a “timely and orderly” manner.

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