PBOC sets USD/ CNY reference rate for today at 6.8157 (vs. estimate at 6.7735)
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The PBOC allows the yuan to fluctuate within a +/- 2% range, around this reference rate. more to come This article was written by Eamonn Sheridan at investinglive.com.
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PBOC sets USD/ CNY reference rate for today at 6.8502 (vs. estimate at 6.8138)
The desk interprets the PBOC's recent USD/CNY reference rate setting at 6.8502, significantly above the market estimate of 6.8138, as a signal of ongoing yuan weakness. Per the full note from Eamonn Sheridan at investinglive.com, the PBOC's allowance for a +/- 2% fluctuation around this rate suggests a controlled depreciation strategy amid economic pressures. Additionally, the central bank's injection of 500 million yuan via 7-day reverse repos at an unchanged rate of 1.4% indicates a liquidity support measure aimed at stabilizing the currency. This aligns with our view that the yuan may continue to face downward pressure in the near term as the PBOC navigates economic challenges.