What stands out in SAFE’s remarks is as much what wasn’t emphasized as what was: the regulator devoted little specific commentary to the yuan’s level or direction beyond a passing reference to stability, which could be read as a signal that Beijing currently has limited concern…
out where the currency is trading. That relatively muted focus on FX levels, paired with heavier emphasis on cross-border yuan usage and net foreign inflows in the first half, suggests policymakers are more focused on structural internationalization of the currency than on managing near-term price action
The pledge to roll out further cross-border investment and financing facilitation policies points to continued gradual capital account opening rather than any near-term shift in FX management stance. — SAFE’s emphasis on cross-border yuan usage and capital inflows over commentary on the currency’s actual level suggests Beijing is not currently worried about where the yuan is trading. Summary: China’s foreign exchange regulator SAFE said the country’s FX market has operated smoothly with active trading so far this year and has withstood external shocks while remaining stable. The yuan accounted for 52.9% of cross-border receipts and payments, up 1.3 percentage points from 2025.
SAFE said domestic factors play the decisive role in the FX market and that it will continue to mitigate risks from external shocks while supporting economic development. Foreign investment into China saw net inflows in the first half of the year, while outbound investment continued to grow steadily. Companies are increasingly using yuan and FX derivatives to manage exchange rate risk in cross-border transactions, according to the regulator.