PBOC sets daily USD/CNY reference rate below Reuters poll estimate, signaling modest depreciation pressure on the yuan.
The People’s Bank of China set the USD/CNY reference rate at 6.8401 for Thursday’s session, down from 6.8426 the previous day but weaker than the 6.7888 forecast in a Reuters poll. The fix suggests continued caution amid external pressures on the yuan.
China’s central bank uses the daily fixing to guide the yuan’s trading band, typically allowing a 2% deviation. Recent sessions have seen the currency face depreciation trends, reflecting broader market sentiment and capital flow dynamics.
The PBOC’s policy toolkit includes foreign exchange interventions, reserve requirement adjustments, and benchmark rate changes to manage currency stability. The Loan Prime Rate remains a key lever for influencing domestic lending and exchange rates.