PBOC Sets USD/CNY Reference Rate at 7.1523, Below Reuters Forecast

PBOC Fixes USD/CNY Reference Rate at 7.1523, Below Market Estimate

The People’s Bank of China (PBOC) set the USD/CNY central parity rate at 7.1523 on Thursday, down slightly from the previous day’s fix of 7.1546 and below the Reuters forecast of 7.1618.

What the Lower Fixing Suggests

This move suggests the PBOC is signaling a preference for a stable yuan, possibly aiming to counter recent market volatility or speculative pressure against the Chinese currency. The central bank’s daily fixing is closely watched by traders for clues on China’s forex policy stance.

Market Reaction and Expectations

While the difference appears modest, the fix being lower than expectations may impact short-term USD/CNY sentiment in offshore and onshore markets. Traders now look ahead to broader macroeconomic indicators from China and potential guidance shifts from Beijing.

Explore more updates on China's monetary policy in our Asia Forex Section.