People’s Bank of China sets yuan reference rate at 6.7884 (vs. estimate at 6.7379)

The People’s Bank of China set the yuan midpoint reference rate at 6.7884, stronger than market expectations of 6.7379 and the strongest fixing for CNY since February 10, 2023. The move signals official support for the currency and may help stabilize offshore/onshore yuan sentiment in the near term. The PBOC also injected 18 billion yuan via 7-day reverse repos at a 1.4% rate, indicating continued liquidity management alongside the FX fixing. Overall, the article points to a firmer yuan bias and a modestly supportive policy stance from China’s central bank.