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The Chinese yuan’s value has surged to over 96 on a trade-weighted basis, the highest level since early 2018. 

The return to levels seen before the beginning of the US-China trade tussle could pave the way for a more constructive dialogue between the two nations, according to Robin Brooks, Chief Economist at the Institute of International Finance (IIF). 

Launched on Dec. 11, 2015, the trade-weighted yuan aims to shift the market’s sole focus on the exchange rate between the yuan and the USD to the yuan’s performance against a basket of currencies.

The dollar has taken a beating against maost currencies since the March 2020 crash. Yuan has gained significant ground since May 2020, rising from 7.1766 poer US dollar to 6.42 per US dollar.