FX reserve managers around the world expect to shift their holdings towards the Chinese yuan in the long term, as of 2023. Nearly 40 percent of central banks surveyed in 2023 planned to increase their currency reserves with renminbi. The source adds this was especially true for regions that relied on China's economy, such as Asia-Pacific and Sub-Saharan Africa. Asset diversification was another reason for central banks to invest more in the currency.

The USDCNY increased 0.0137 or 0.19% to 7.2796 on Wednesday March 26 from 7.2658 in the previous trading session. Chinese Yuan - values, historical data, forecasts and news - updated on March of 2025.

Long term historical dataset of the daily U.S. Dollar - Chinese Yuan (USDCNY) exchange rate back to 1981.

China Loan: YoY: Local and Foreign Currency: Medium & Long Term: Industrial data was reported at 15.100 % in Sep 2024. This records a decrease from the previous number of 17.500 % for Jun 2024. China Loan: YoY: Local and Foreign Currency: Medium & Long Term: Industrial data is updated quarterly, averaging 7.300 % from Mar 2011 (Median) to Sep 2024, with 55 observations. The data reached an all-time high of 32.400 % in Jun 2023 and a record low of 2.400 % in Sep 2016. China Loan: YoY: Local and Foreign Currency: Medium & Long Term: Industrial data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KB: Loan: By Industry.

According to a median projection in January 2025, China's GDP was expected to grow by 4.9 percent in 2024, largely meeting the annual growth target of five percent set by the Chinese government. In the first quarter of 2020, the second-largest economy recorded the first contraction in decades due to the epidemic.  A root-to-branch shutdown of factories To curb the spread of the virus, the Chinese government imposed a lockdown in Wuhan, the epicenter, and other cities in Hubei province on January 23, 2020. A strict nationwide lockdown soon followed. Many factories remained closed in February, resulting in a plunge in manufacturing Purchasing Managers' Index (PMI). The shutdown of the “world’s factory” had severely disrupted global supply chains, especially automobile production. In March 2020, very few industrial sectors reported positive production growth.  The pharmaceuticals sector recorded a production increase, which was mainly driven by the global demand for vital medical supplies. China had exported over seven billion yuan worth of face masks. Ripple effects on global tourism Apart from the manufacturing industry, the prolonged closures of business had caused significant losses in various sectors in China. The travel and tourism sector was massively affected by a drastic decline in flight ticket sales  and hotel occupancy rates. The domestic tourism market expects a loss of 20 percent in revenues for 2020. Industry experts predicted that the global travel and tourism industry could lose about 2.5 trillion U.S. dollars in that year. 

The benchmark interest rate in China was last recorded at 3.10 percent. This dataset provides the latest reported value for - China Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

China Foreign Debt: Government: Long Term: Currency and Deposit data was reported at 0.000 USD mn in Dec 2018. This stayed constant from the previous number of 0.000 USD mn for Sep 2018. China Foreign Debt: Government: Long Term: Currency and Deposit data is updated quarterly, averaging 0.000 USD mn from Dec 2014 (Median) to Dec 2018, with 17 observations. The data reached an all-time high of 0.000 USD mn in Dec 2018 and a record low of 0.000 USD mn in Dec 2018. China Foreign Debt: Government: Long Term: Currency and Deposit data remains active status in CEIC and is reported by State Administration of Foreign Exchange. The data is categorized under China Premium Database’s Government and Public Finance – Table CN.FA: Foreign Debt: Quarterly.

Key information about China Long Term Interest Rate

• China Treasury Bond Yield: Interbank: Spot Yield: 10 year was reported at 1.64 % pa in Jan 2025, compared with 1.69 % pa in the previous month.
• China Long Term Interest Rate data is updated monthly, available from Jul 2008 to Jan 2025.
• The data reached an all-time high of 4.63 % pa in Dec 2013 and a record low of 1.64 % pa in Jan 2025.
• Long Term Interest Rate is reported by reported by National Interbank Funding Center.

• In the latest reports, China Short Term Interest Rate: Month End: SHIBOR: 3 Months was reported at 1.70 % pa in Jan 2025.
• The cash rate (Policy Rate: Month End: China: Rediscount Rate) was set at 2.65 % pa in Jun 2023.
• China Exchange Rate against USD averaged 7.16 (USD/RMB) in Jun 2023.

China Financial Inst: Foreign Currency: Use: Loan: Domestic: Medium to Long Term data was reported at 117.202 USD bn in Oct 2018. This records a decrease from the previous number of 118.926 USD bn for Sep 2018. China Financial Inst: Foreign Currency: Use: Loan: Domestic: Medium to Long Term data is updated monthly, averaging 131.934 USD bn from May 2000 (Median) to Oct 2018, with 202 observations. The data reached an all-time high of 202.185 USD bn in Aug 2014 and a record low of 22.310 USD bn in Dec 2000. China Financial Inst: Foreign Currency: Use: Loan: Domestic: Medium to Long Term data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KC: Source and Use of Credit Fund: Financial Institution (Old Classification).

Inflation Rate in China decreased to -0.70 percent in February from 0.50 percent in January of 2025. This dataset provides - China Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

According to latest figures published by the National Bureau of Statistics of China, the average annual inflation rate in China ranged at around 0.2 percent in 2024 compared to the previous year. This was lower than formerly expected by the IMF. For 2025, projections by the IMF published in October 2024 expected the inflation rate to reach around 1.7 percent. The monthly inflation rate in China dropped to negative values in the second half of 2023 and remained comparatively low in 2024. Calculation of inflation The inflation rate is calculated based on the Consumer Price Index (CPI) for China. The CPI is computed using a product basket that contains a predefined range of products and services on which the average consumer spends money throughout the year. Included are expenses for groceries, clothes, rent, power, telecommunications, recreational activities, and raw materials (e.g. gas, oil), as well as federal fees and taxes. The product basked is adjusted every five years to reflect changes in consumer preference and has been updated in 2020 for the last time. The inflation rate is then calculated using changes in the CPI. As the inflation of a country is seen as a key economic indicator, it is frequently used for international comparison. China's inflation in comparison Among the main industrialized and emerging economies worldwide, China displayed comparatively low inflation in 2023 and 2024. In previous years, China's inflation ranged marginally above the inflation rates of established industrialized powerhouses such as the United States or the European Union. However, this changed in 2021, as inflation rates in developed countries rose quickly, while prices in China only increased moderately. According to IMF estimates for 2024, Zimbabwe was expected to be the country with the highest inflation rate, with a consumer price increase of about 561 percent compared to 2023. In 2023, Turkmenistan had the lowest price increase worldwide with prices actually decreasing by about 1.7 percent.

China Loan: Local and Foreign Currency: Medium & Long Term: Industrial data was reported at 24,580.000 RMB bn in Dec 2024. This records an increase from the previous number of 24,230.000 RMB bn for Sep 2024. China Loan: Local and Foreign Currency: Medium & Long Term: Industrial data is updated quarterly, averaging 7,971.927 RMB bn from Mar 2010 (Median) to Dec 2024, with 60 observations. The data reached an all-time high of 24,580.000 RMB bn in Dec 2024 and a record low of 5,086.408 RMB bn in Mar 2010. China Loan: Local and Foreign Currency: Medium & Long Term: Industrial data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KB: Loan: By Industry.

China Loan: Local and Foreign Currency: Medium & Long Term: Services data was reported at 67,590.000 RMB bn in Dec 2024. This records a decrease from the previous number of 67,740.000 RMB bn for Sep 2024. China Loan: Local and Foreign Currency: Medium & Long Term: Services data is updated quarterly, averaging 29,665.000 RMB bn from Mar 2010 (Median) to Dec 2024, with 60 observations. The data reached an all-time high of 67,740.000 RMB bn in Sep 2024 and a record low of 12,008.121 RMB bn in Mar 2010. China Loan: Local and Foreign Currency: Medium & Long Term: Services data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KB: Loan: By Industry.

Snapshot img

Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion at a CAGR of 10.6% between 2024 and 2029.

The market continues to evolve, driven by several key trends and challenges. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. The Internet of Things (IoT) and artificial intelligence (AI) revolutionize banking and financial services, enabling real-time personal finance software and content delivery for travelers and businesses. The uncertainty of future exchange rates fuels the demand for 24x7 trading opportunities. As urbanization progresses and digitalization becomes more prevalent, the market is expected to grow, offering numerous opportunities for businesses and investors.

What will be the Size of the Foreign Exchange Market During the Forecast Period?

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The market, also known as the forex or FX market, is a decentralized global market for the trading of currencies. It facilitates the conversion of one currency into another for various reasons, including international trade, tourism, hedging, speculation, and investment. Participants in this market include financial institutions, non-financial customers, individuals, retailers, corporate institutes, and central banks. Currencies are traded 24 hours a day, five days a week, due to the presence of multiple time zones and the interbank network.
Currency swaps, interest rate differentials, monetary interventions, economic indicators, political developments, and investment flows are some of the key drivers influencing the market. International trade, balance of payments, and economic instability in various countries also significantly impact currency values. Speculation and hedging activities, particularly by corporations and financial institutions, contribute to the volatility of currency rates. The market is increasingly leveraging artificial intelligence and Internet of Things technologies to optimize trading strategies, with mutual funds utilizing these advancements to enhance portfolio performance and manage currency risk more efficiently. The forex market plays a crucial role in facilitating international business transactions and managing risks associated with currency fluctuations.

How is this Foreign Exchange Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.TypeReporting dealersFinancial institutionsNon-financial customersTrade Finance InstrumentsCurrency swapsOutright forward and FX swapsFX optionsCounterpartyReporting DealersOther Financial InstitutionsNon-Financial CustomersGeographyNorth AmericaCanadaUSEuropeGermanyUKAPACChinaIndiaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period. The market, also known as Forex or FX, is a global financial market where participants buy, sell, and exchange currencies. This market involves various market participants, including financial institutions, non-financial customers, and corporations. Currency swaps, individuals, retailers, corporates, hedge funds, wealth managers, and foreign exchange services are among the key players. The markets facilitate international trade and investment flows, with economic indicators, political developments, inflationary pressures, and interest rate differentials influencing currency values. Monetary interventions, speculation, and risk appetite are also significant factors.
Modern technology and electronic platforms have increased efficiency and accessibility, enabling 24-hour operation. Currency exchange services, monetary policies, and regulations, including those by central banks, impact the market. Economic events, financial crises, and strategic corporate activities can cause volatility. Hedging strategies, accessible platforms, and personal finance considerations are essential for individual investors, small businesses, and multinational corporations dealing with major currency pairs. Online trading platforms and trade balances are crucial for managing currency risks in an increasingly globalized business environment.

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The Reporting dealers segment was valued at USD 278.60 billion in 2019 and showed a gradual increase during the forecast period.

Currency pairs are the foundation of forex trading, with spot trading being one of the most common methods of buying and selling currencies. Forward contracts and swap deals offer traders the ability to lock in exchange rates for future transactions, managing ris

China 10Y Bond Yield was 1.88 percent on Wednesday March 26, according to over-the-counter interbank yield quotes for this government bond maturity. China 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on March of 2025.

China Loan: Local and Foreign Currency: Medium & Long Term: Industrial: Light data was reported at 3,610.000 RMB bn in Dec 2024. This records an increase from the previous number of 3,550.000 RMB bn for Sep 2024. China Loan: Local and Foreign Currency: Medium & Long Term: Industrial: Light data is updated quarterly, averaging 935.350 RMB bn from Mar 2010 (Median) to Dec 2024, with 58 observations. The data reached an all-time high of 3,610.000 RMB bn in Dec 2024 and a record low of 505.558 RMB bn in Mar 2010. China Loan: Local and Foreign Currency: Medium & Long Term: Industrial: Light data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KB: Loan: By Industry.

In 2023, Shanghai was the city with the largest GDP in China, reaching a value added of approximately 4.7 trillion yuan. The four Chinese first-tier cites Beijing, Shanghai, Shenzhen, and Guangzhou had by far the strongest economic performance. Development of Chinese cities Rapid urbanization and economic growth have reshaped all Chinese cities since the economic opening up of China. While the first-tier cities have overall benefitted most from this development, the last two decades have seen many second-tier cities catching up. For many years already, growth rates in Qingdao, Hangzhou, Changsha, and Zhengzhou have been higher than in Shanghai or Beijing.This development was driven by lower costs in smaller cities, a specialization of their economies, and political measures to support inland cities and ease the pressure on the largest municipalities. Today, per capita GDP in cities such as Suzhou, Nanjing, and Shenzhen is already higher than in Beijing or Shanghai. Future perspectives Competition between cities will further change China’s urban landscape in the future. Medium-sized cities that can provide an attractive economic environment have the potential to grow their economy at a faster pace, attract immigration, and further increase their relative importance. Cities that are losing their competitive edge, however, like Shenyang, Dalian, and other cities in the northeastern rustbelt, are increasingly confronted by economic stagnation and demographic decline.

China Depository Financial Inst: Foreign Currency: Use: Loan: Domestic: Household: Medium & Long Term: Consumption data was reported at 0.285 USD bn in Jun 2018. This records a decrease from the previous number of 0.289 USD bn for May 2018. China Depository Financial Inst: Foreign Currency: Use: Loan: Domestic: Household: Medium & Long Term: Consumption data is updated monthly, averaging 0.295 USD bn from Jan 2015 (Median) to Jun 2018, with 42 observations. The data reached an all-time high of 0.330 USD bn in Feb 2015 and a record low of 0.258 USD bn in Jun 2017. China Depository Financial Inst: Foreign Currency: Use: Loan: Domestic: Household: Medium & Long Term: Consumption data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under China Premium Database’s Money and Banking – Table CN.KC: Source and Use of Credit Fund: Depository Financial Institution: by Sector: Foreign Currency.

By 2035, over 34 million people are projected to call Shanghai home. To reduce this number, the Chinese Government implemented population controls for the city in 2017 which aimed to limit the population living in the administrative area of Shanghai municipality to just around 25 million people in 2035.

Megacity – Shanghai

As China’s cities become increasingly urbanized, the demographic of this megacity has also changed considerably over the years, with more and more Chinese locals and foreigners opting to dwell in Shanghai for work and cultural opportunities. A huge proportion of residents in the city originate from other regions in China. Over 39 percent of the city’s residents are long-term migrants and Shanghai host’s many foreigners and expats.

A global financial hub as well as the largest city by population, Shanghai is located on China’s central coast, making it an ideal location to accommodate the world’s busiest container port. The economic contribution of the city to China is significant - Shanghai’s gross domestic product contribution amounted to almost 4.7 trillion yuan in 2023. Despite recent restrictions to land made available for construction, the value of investment in real estate development in Shanghai has continued to increase. To mitigate the effects of its high population, the city has stated it will intensify environmental protection measures.

China SPDB: Loans in Foreign Currency: Medium to Long Term data was reported at 119.390 USD mn in Dec 2001. This records a decrease from the previous number of 142.020 USD mn for Sep 2001. China SPDB: Loans in Foreign Currency: Medium to Long Term data is updated quarterly, averaging 144.600 USD mn from Mar 2000 (Median) to Dec 2001, with 8 observations. The data reached an all-time high of 342.560 USD mn in Mar 2000 and a record low of 113.500 USD mn in Dec 2000. China SPDB: Loans in Foreign Currency: Medium to Long Term data remains active status in CEIC and is reported by The People's Bank of China. The data is categorized under Global Database’s China – Table CN.KE: Shanghai Pudong Development Bank (SPDB): Loan and Deposit: in Foreign Currency.