Yuan vs US Dollar: Which Is More Profitable for Investment in 2026?

Jakarta, VIVA – The comparison between the Chinese yuan and the United States dollar as an investment instrument or benchmark has once again drawn attention for 2026. The two currencies represent the world’s two largest economies with very different characteristics.

The US dollar is known as the safest asset in the world, while the Chinese yuan is increasingly seen as a currency with gradual strengthening potential. In some global analyst projections, 2026 is expected to be a period of adjustment in the currency markets.

The US dollar remains strong, but is beginning to show potential for moderate weakness as interest rate policy changes. On the other hand, the yuan is anticipated to move more steadily with a tendency to gradually strengthen.

So, which will be more profitable for investments in 2026? The answer largely depends on the investor’s objectives and risk profile. The following explanation, as cited from Investing, Thursday 21 May 2026.

1. The US dollar is still considered safe, stable, and the most liquid

The US dollar remains the primary currency in the global financial system. Many investors choose the dollar for its stability and very high liquidity. When global economic uncertainty arises, the dollar typically strengthens as it is regarded as a safe asset.

This leads to the dollar being frequently used as a hedge or safe haven within investment portfolios. However, for potential gains from exchange-rate differentials, the dollar tends to be less aggressive when the global economy begins to stabilise. If US interest rates start to fall, the potential for dollar appreciation could also be more limited than in prior periods.

2. The Chinese yuan seen as stable with potential gradual appreciation

The Chinese yuan is gaining attention as a stable currency with medium-term appreciation potential. This is driven by the strength of China’s export sector and a still sizeable trade surplus. Additionally, the People’s Bank of China’s relatively controlled policy makes yuan movements not overly volatile. This provides a sense of stability for investors seeking a balance between risk and return potential.

Nevertheless, the yuan remains under close scrutiny of Chinese government policy. In other words, its movements are not entirely free like other major currencies, so its room for fluctuation is more limited.