People’s Bank of China sets USD/CNY reference rate at 6.7769

The People’s Bank of China (PBOC) set the USD/CNY central reference rate for the current trading session at 6.7769, compared to the previous day’s fix of 6.7804.

China utilizes a managed floating exchange rate system, allowing the yuan to trade within a band of plus or minus 2% around the daily midpoint. The PBOC uses the daily fixing as a tool to signal its intentions regarding currency movement. While a stronger yuan can assist with capital stability and import costs, policymakers must balance this against the risk of eroding export competitiveness, particularly during periods of domestic economic softness.