The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1710 on February 12, 2025, significantly lower than the market estimate of 7.2971. This marks a notable adjustment, as the previous close was 7.3060. The PBOC also conducted open market operations, selling 558 billion yuan in 7-day reverse repos at an interest rate of 1.5%. Furthermore, the central bank plans to issue 40 billion yuan in three-month bills and 20 billion yuan in one-year bills in Hong Kong on February 14. On February 13, the PBOC set the USD/CNY mid-point at 7.1719, again below market expectations, and reiterated its commitment to maintaining ample liquidity and implementing an appropriately loose monetary policy to support economic growth. The central bank aims to keep the yuan exchange rate stable at a reasonable and balanced level while adjusting its policies based on domestic and international economic conditions.