The People's Bank of China (PBOC) has recently adjusted the USD/CNY reference rates, with the most notable change occurring on June 20, 2025, when it set the central parity rate at 7.1695 per US dollar. This level marks the strongest yuan valuation since March 17 and is approximately 100 pips stronger than market expectations. The rate on June 20 was set lower than Reuters' estimate of 7.1801 and was the first time the yuan fixed below 7.17 since Liberation Day. In addition to setting the reference rate, the PBOC injected 161.2 billion yuan through 7-day reverse repos at an unchanged rate of 1.40%, while net draining 41.3 billion yuan through open market operations. Analysts have noted a slight appreciation of the Chinese yuan against the US dollar from previously weak levels, suggesting a trend worth monitoring. The PBOC's daily reference rates from June 12 to June 19 fluctuated between approximately 7.1729 and 7.1803, generally below Reuters' estimates, indicating a subtle strengthening of the yuan over this period.