China Cuts Dollar Weighting in Yuan Index in Annual Reset
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China will reduce the U.S. dollar’s prominence in the official yuan exchange rate index, the largest such adjustment in the basket’s latest annual rebalancing, as Beijing seeks to better reflect changes in its global trade flows.
Effective Jan. 1, 2026, the dollar’s weight in the CFETS RMB Index will be lowered by 0.6 percentage points to 18.3%, the China Foreign Exchange Trade System (CFETS) said Wednesday. Despite the cut, the dollar remains the most influential currency in the index, which tracks the yuan against a basket of currencies representing China’s key trading partners.
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- China will reduce the U.S. dollar’s weight in the yuan exchange rate index to 18.3% starting Jan. 1, 2026.
- The South Korean won becomes the third most weighted currency, while the Hong Kong dollar’s weight will rise to 4.1%.
- The index’s five largest currencies (USD, EUR, KRW, JPY, AUD) comprise nearly 60% of the total; the RMB Index fell 3.8% in 2024 despite yuan gains vs. USD.
- 2024：
- The yearly reweighting of the CFETS RMB Index is based on trade data from 2024. The bilateral trade between China and Australia dropped by 8% to around $210 billion.
- By the end of 2024：
- The CFETS RMB Index had a value that was roughly 3.8% higher than its value as of December 26, 2025.
- 2025：
- The Macao pataca was added to the CFETS RMB Index.
- As of Friday, December 26, 2025：
- The CFETS RMB Index stood at 97.6, down roughly 3.8% from the end of 2024.
- By January 1, 2026：
- The weight of the U.S. dollar in the CFETS RMB Index will be lowered by 0.6 percentage points to 18.3%. The Australian dollar’s weight will decline by 0.5 percentage points to 5.4%. The Japanese yen will be trimmed by 0.5 percentage points to 8.1%. The Hong Kong dollar will rise by 0.6 percentage points to 4.1%. The euro’s share will slip slightly to 17.9%. The Mexican peso will rise to 2.8%, overtaking the British pound, which will fall to 2.7% and the 13th position. The Macao pataca, added in 2025, will remain at 0.1%.
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