The People's Bank of China (PBOC) has consistently set the USD/CNY reference rate at levels stronger than market estimates throughout late August 2025. Since November 6, 2024, the yuan's midpoint has reached its highest level, with the central parity rate rising steadily from 7.1161 on August 25 to 7.1030 on August 29. This 33-pip increase on August 29 marked the strongest yuan midpoint since November 2024 and was 244 pips stronger than market expectations. Over the month, the PBOC has strengthened the yuan fix by 0.65%, the largest monthly increase since September. Analysts interpret these moves as a subtle shift in the central bank's strategy, favoring a stronger yuan amid improving economic conditions in China.