China's central bank, the People's Bank of China (PBOC), has been adjusting the yuan's midpoint against the US dollar over several days in August 2025, reflecting a trend of strengthening the currency. On August 11, the PBOC set the yuan midpoint at 7.1405, a firm move from the previous close of 7.1799. This was followed by a midpoint of 7.1418 on August 12, down from 7.1881. On August 13, the midpoint was set at 7.1350, stronger than the prior close of 7.1829. Most recently, on August 14, the yuan midpoint was fixed at 7.1337 per US dollar, firmer than the previous close of 7.1775. This latest setting marked the strongest yuan level since November 6, 2024, and was about 13 pips higher than the previous rate, exceeding market expectations by approximately 400 pips. These adjustments indicate a deliberate effort by the PBOC to strengthen the yuan against the dollar amid ongoing market conditions.