PBOC SETS USD/CNY REFERENCE RATE AT 7.2043 VS. 7.2066 PREVIOUS
PBOC SETS USD/CNY REFERENCE RATE AT 7.2043 VS. 7.2066 PREVIOUS
On Monday, April 28, 2025, the People's Bank of China (PBOC) set the USD/CNY central parity rate at 7.2043, slightly lower than the previous day's fix of 7.2066.
This adjustment reflects the PBOC's ongoing management of the yuan's exchange rate within its daily trading band.
The PBOC's setting of the USD/CNY reference rate at 7.2043 on Monday indicates a marginal appreciation of the yuan against the US dollar compared to the previous day's rate of 7.2066.
The PBOC's reference rate is closely watched by market participants, as it provides insight into the central bank's stance on currency valuation and market intervention.
China's managed floating exchange rate system allows the yuan to trade within a specified range around the daily reference rate.
The PBOC may intervene in the foreign exchange market to maintain the currency's value within this band.
PBOC considers various economic factors, including inflation rates, trade balances, and capital flows, when determining the daily reference rate.
Adjustments to the USD/CNY reference rate can influence investor sentiment and have implications for global financial markets, particularly in trade and investment flows between China and other economies.
