PBOC sets the USD/CNY reference rate at 6.7808, below Reuters’ estimate of 6.7196 and yesterday’s 6.7854 fix.
The People’s Bank of China set the USD/CNY reference rate at 6.7808 for Thursday’s trading session, firmer than Wednesday’s fix of 6.7854. The move came in above Reuters’ estimate of 6.7196, signaling a modest strengthening of the yuan.
The PBOC’s daily fixing serves as a midpoint for the yuan’s trading band, which allows the currency to fluctuate 2% above or below the rate. The central bank’s tools, including foreign exchange interventions and the Loan Prime Rate, influence the yuan’s value.
The fix reflects China’s efforts to balance exchange rate stability with broader monetary policy objectives, including economic growth and financial market reforms.