PBOC sets USD/CNY reference rate above Reuters estimate of 6.7577, signaling modest depreciation pressure on the yuan.
The People’s Bank of China set the daily USD/CNY reference rate at 6.7948, slightly weaker than Friday’s fix of 6.7934. The rate came in above a Reuters poll estimate of 6.7577, reflecting a marginal depreciation bias for the yuan.
The central bank’s fix serves as a midpoint for the yuan’s trading band, allowing fluctuations of 2% in either direction. Recent sessions have seen the yuan trade near the weaker end of its permitted range amid broader dollar strength and domestic economic concerns.
Markets monitor the fix closely as an indicator of Beijing’s currency policy stance, particularly amid efforts to balance stability with external pressures. The PBOC has historically intervened to prevent sharp yuan moves, using tools like foreign exchange reserves and reserve requirement adjustments.