PBOC sets USD/CNY reference rate above Reuters estimate, signaling modest depreciation pressure on the yuan.
The People’s Bank of China set the daily USD/CNY reference rate at 6.7939, weaker than Thursday’s 6.7906 fix and above the 6.7795 Reuters estimate. The adjustment reflects recent dollar strength and market expectations for yuan depreciation.
China’s central bank uses the fixing to guide onshore yuan trading, aiming to balance stability with market forces. The rate is determined by a survey of market makers and adjusted for policy objectives, including export competitiveness and capital flow management.
The yuan has faced downward pressure amid a stronger dollar and concerns over China’s economic recovery. The PBOC’s tools, including foreign exchange interventions and liquidity adjustments, remain key to managing volatility.