People’s Bank of China sets USD/CNY reference rate at 6.7841

The People’s Bank of China (PBOC) has set the USD/CNY central reference rate for the current trading session at 6.7841. This follows a previous fix of 6.7817.

China utilizes a managed floating exchange rate system where the renminbi is permitted to trade within a 2% band around the daily midpoint set by the central bank. The PBOC determines this midpoint using various inputs, including previous closing prices, international foreign exchange conditions, and domestic economic factors such as capital flows and financial stability. The daily fixing is frequently viewed by markets as a policy signal regarding the central bank's stance on currency depreciation or appreciation.