The People's Bank of China (PBOC) has set the USD/CNY reference rate at 7.1889 for January 17, 2025, which is 8 pips lower than the previous rate of 7.1881. This rate is approximately 1,400 pips stronger than market expectations, which had estimated a rate around 7.3275. On January 16, the PBOC set the rate at 7.1881, also significantly lower than the forecast of 7.3247. The yuan has shown strength following the release of better-than-expected economic data from China, contributing to its rise in the offshore market. Earlier, on January 15, the reference rate was set at 7.1883, compared to an estimate of 7.3240. The PBOC's recent adjustments reflect ongoing efforts to manage the currency amid fluctuating market conditions.