Commerzbank’s FX team reports that the Chinese yuan (CNY) is the only Asian currency to have appreciated against the US dollar since late February, rising 0.5% while other Asian currencies have depreciated by an average of 2.2% over the same period [1]. Year-to-date, the CNY is up 2.3%, making it one of the top three performing Asian currencies alongside the Malaysian ringgit (MYR, +2.6%) and Singapore dollar (SGD, +0.8%) [1].
The CNY’s resilience is attributed to robust export performance, which has provided a fundamental cushion despite ongoing structural challenges such as overcapacity, a persistent property downturn, and fragile domestic sentiment [1]. Policy support and geopolitical considerations are also playing a role. Commerzbank notes that China appears to be tactically tolerating a stronger CNY ahead of the Trump–Xi summit, rescheduled for 14-15 May, to bolster its image as a stabilizing force and to distract from its large current account surplus. This is evidenced by the People’s Bank of China’s (PBoC) consistently stronger mid-point fixing for the CNY in the first 11 weeks of the year [1].
Additionally, the yuan’s role in global trade settlement is expanding. According to SWIFT data, the CNY’s share in global payments rose to 3.1% in March 2026 from 2.7% at the end of 2025, though it remains behind the US dollar (51.1%) and euro (21.3%) [1]. The PBoC reports that about one-third of China’s global merchandise trade was settled in CNY in 2025, up from 20% in 2022. Nearly all China-Russia trade is now settled in CNY, contributing about 3-5 percentage points to the total trade settled in the currency. Overall, the CNY’s share of China’s total cross-border settlements, including trade, services, and financial transactions, reached around 53% in March 2026 [1].
While the CNY’s recent strength is supported by exports and policy, structural headwinds remain. However, the currency’s growing use in international settlements and China’s strategic positioning ahead of key geopolitical events are seen as supportive factors for the yuan’s outlook [1].
CONCLUSION
The Chinese yuan has outperformed its Asian peers in 2024, buoyed by strong exports, policy support, and increased use in global settlements. Despite ongoing domestic challenges, China’s tactical approach and rising internationalization of the CNY are enhancing its stability and global profile.