PBOC SETS USD/CNY MID-POINT FOR FEBRUARY 6, 2025
PBOC SETS USD/CNY MID-POINT FOR FEBRUARY 6, 2025
The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1691 for today.
This rate is stronger than the market estimate of 7.2535.
The reference rate determines the value of the yuan relative to the US dollar for the trading session.
The PBOC manages the yuan's exchange rate within a +/- 2% band around this daily midpoint.
JP Morgan expects the US-China tariff war to escalate, leading to a weaker Chinese yuan.
As a result of these developments, the PBOC is expected to intervene to support the yuan.
