Yuan Bounces Back From 16-Year Low After People's Bank of China Steps In

Washington has only stepped up its trade and sanctions war on Beijing since Joe Biden became US president. But China is increasingly settling payments with its trade partners in its own currency, undercutting the once-mighty dollar.

The Chinese yuan has recovered from its lowest point after intervention by the country's central bank.

The currency fell to a rate of 7.26 to the US dollar last week, but peaked at around 7.35 on Friday before settling at just over 7.32 on Monday. Unnamed currency traders in China said lenders were selling dollars.

Singapore-based foreign exchange strategist Christopher Wong said intervention by the People's Bank of China "underscores policymakers' resolve to keep the yuan depreciation pressure in check."

But "it remains early to tell if this is really a turnaround due to the effects of economic support measures," Wong said.

Over the weekend it was reported that Chin and Russia were advancing in the process of dedollarization, with 80 per cent of bilateral trade payments now settled in their own national currencies.