China Allows Yuan to Strengthen; Signs $7 Billion, 50 Billion Yuan, and 26 Billion Saudi Riyals Currency Swap with Saudi Arabia

China's central bank has allowed the yuan to strengthen, providing relief after months of effectively pegging it to the dollar. China and Saudi Arabia have signed a local currency swap agreement worth around $7 billion, aimed at deepening their ties and shifting more trade away from the dollar. The agreement has a total value of 50 billion yuan ($6.98 billion) and 26 billion Saudi riyals, fostering bilateral commerce and promoting the yuan's globalisation. This move is seen as part of Beijing's efforts to globalize the yuan and protect the Chinese economy from possible U.S. sanctions.