The People's Bank of China (PBOC) has been actively managing the yuan's reference rate against the US dollar throughout early August 2025, with the yuan strengthening to its highest levels since November 6, 2024. On August 4, the PBOC set the yuan midpoint at 7.1395, marking an appreciation from the prior close of 7.1930. Subsequent fixes saw minor fluctuations, including a rate of 7.1366 on August 5 and 7.1409 on August 6. By August 7, the yuan reference rate reached 7.1345, the strongest since November 2024, before the PBOC set it at 7.1382 on August 8, down from 7.1815 at the previous close. Alongside these rate adjustments, the PBOC conducted open market operations involving injections and drains of liquidity. For instance, it injected 544.8 billion yuan through 7-day reverse repos at an unchanged rate of 1.40% on August 4 but also drained net amounts on various days, including 49 billion yuan on August 4, 288.5 billion yuan on August 5, 170.5 billion yuan on August 6, 122.5 billion yuan on August 7, and 4 billion yuan on August 8. The yuan opened at 7.1808 per dollar on August 8, slightly stronger than the previous close of 7.1815. These actions underscore the PBOC's efforts to stabilize and strengthen the yuan amid ongoing trade tensions.