The People's Bank of China (PBOC) has set the USD/CNY reference rate at levels not seen since November 6, 2024, indicating a notable strengthening of the yuan against the US dollar. On August 25, 2025, the PBOC fixed the yuan mid-point at 7.1161 per dollar, significantly stronger than market estimates around 7.1551 and the previous close of 7.1666. This represented the most substantial strengthening of the yuan's fixing since January 2025. The onshore yuan also appreciated to 7.1616 per dollar, its strongest level since July 25, 2025. On August 26, the PBOC set the reference rate at 7.1188, again firmer than the estimated 7.1670, marking a 27-pip cut from the previous fixing but still about 500 pips stronger than market expectations. By August 27, the yuan midpoint was fixed at 7.1108 per dollar, the strongest since November 6, 2024, and 80 pips higher than the previous close of 7.1518. This fixing was also approximately 450 pips stronger than market expectations. The yuan's appreciation has been supported by a weaker US dollar and gains in Chinese local equities. Overall, the PBOC's adjustments reflect a deliberate policy to strengthen the yuan amid evolving market conditions.