China’s ability to keep selling more of its goods abroad means officials will be in no rush to rein in their strongest yuan in more than two years.

The People’s Bank of China in November has refrained from using tools to limit the yuan’s advance, even as the currency heads for the longest run of monthly gains in six years. That’s a reversal from last month, when authorities made it cheaper to bet against the yuan and eased some control over the exchange rate, moves that were interpreted as part of Beijing’s effort to rein in appreciation.

Apart from friendlier ties between Washington and Beijing, the currency is also climbing on bets the nation’s rebound from the pandemic is well on track. The premium that Chinese government bonds offer over American debt is near the highest on
record, which attracts foreign inflows and supports the yuan. A weak dollar provides yet another boost.

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