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 central parity rate at 6.7904 for Friday’s session, weaker than Thursday’s fix of 6.7895. The rate also exceeded the Reuters estimate of 6.7548, reflecting a modest depreciation trend.
The PBOC’s daily reference rate serves as a benchmark for onshore yuan trading, with the currency allowed to fluctuate within a 2% band. Recent fixes have shown gradual weakening amid broader dollar strength and domestic economic concerns.
The central bank uses the rate to manage exchange rate stability, one of its key policy objectives alongside price stability and economic growth. No immediate market reaction was reported following the announcement.