PBOC sets USD/CNY reference rate above Reuters estimate, signaling slight depreciation pressure on the yuan.
The People’s Bank of China set the USD/CNY reference rate at 6.7895 for Thursday’s session, up from 6.7889 the previous day. The fix came in above the Reuters estimate of 6.7462, indicating a modest weakening bias for the yuan.
The central bank’s daily fixing serves as a midpoint for the yuan’s trading band, allowing fluctuations of 2% in either direction. Recent adjustments reflect broader monetary policy objectives, including exchange rate stability and economic growth support.
The PBOC uses tools like the Loan Prime Rate and foreign exchange interventions to manage currency movements, though no immediate market reaction was reported following the latest fix.