The People's Bank of China (PBOC) has reduced the central parity rate of the yuan (CNY) to its lowest level since January, amid a strengthening US dollar. On May 22, the PBOC cut the rate by 8 pips to 7.1077 per USD, which was approximately 1,300 pips stronger than market expectations. The following day, the PBOC further reduced the rate by 21 pips to 7.1098 per USD, about 1,400 pips stronger than market expectations. Additionally, the PBOC sold 7-day reverse repos at 1.8%, raising CNY 2 billion. Surveys estimated the yuan fixing at 7.2462, with a fixing range between 7.2430 and 7.2531. Another survey estimated the fixing at 7.2372, with a range between 7.2240 and 7.2380.