⚠️ CHINA'S YUAN OPENS TRADE AT 7.1730 PER DOLLAR VS LAST CLOSE AT 7.1757
⚡PBOC cuts the $CNY Central Parity Rate by 74 pips to 7.1460 per USD, about 400 pips stronger than market expectations. #CN_Note China is unwilling to see yuan depreciation today, as the fixing rate is set much stronger than expected again. #China $USDCNY $USDCNH #ChinaChart https://t.co/qtJL3xbTw3
SURVEY SHOWS CHINA'S YUAN FIXING ESTIMATED AT 7.1831
The People's Bank of China (PBOC) has adjusted its monetary policy by setting the yuan's central parity rate at 7.1386 per USD, marking the weakest level since November 2023. This adjustment, a cut of 68 pips, is only 93 pips stronger than market expectations, indicating a significant move by the central bank. The PBOC also skipped its daily reverse repo operation, effectively draining 251.67 billion yuan from the open market. On the following day, the PBOC further cut the central parity rate by 74 pips to 7.1460 per USD, about 400 pips stronger than market expectations, showing China's reluctance to see yuan depreciation. This marks the third consecutive day where the gap between the PBOC's reference rate and market estimates has narrowed. The yuan opened trading at 7.1662 per dollar, compared to the last close at 7.1550.
