China's People's Bank of China (PBOC) has been setting the USD/CNY reference rate slightly stronger than market estimates over the past week. From August 18 to August 22, 2025, the PBOC's daily mid-point fixing for the yuan against the US dollar ranged between 7.1287 and 7.1384, consistently below market expectations which were around 7.17 to 7.19. On August 22, the PBOC set the yuan mid-point at 7.1321 per dollar, marking a 34-pip cut from previous levels and a 550-pip appreciation relative to market forecasts. This adjustment indicates a stronger yuan than anticipated by traders and analysts.