The yuan has risen nearly 8% in the past 24 hours, driven by the global rebound in the Chinese economy and fears of a global economic slowdown.
The Chinese government says it expects the yuan to rise another 1.5% this year and 2.5%, adding that this surge will provide the Chinese government with extra revenues from goods and services exported to the US.
The central bank also forecasts the yuan will increase by a further 0.3% in 2017.
China’s economy has been hurt by the ongoing economic slowdown in the US and Europe.
But the global economy is showing signs of rebounding as well, as China is boosting exports of goods, services and technology, according to the Commerce Department.
China is also boosting imports from the US, which has been hit by a global trade war.
In November, the United States cut off most imports from China, the biggest US trading partner.
The U.S. also banned Chinese goods from entering the country.
The Trump administration has said that the China-related sanctions are necessary to protect American workers and businesses, but Chinese economists say the U.C.I.O. sanctions are simply designed to hurt US companies that have benefited from China’s rapid economic growth.
The dollar has jumped about 1% against the euro on Monday, the most significant gain since the start of the year.
The euro has gained about 1.2% in value against the Japanese yen.