The offshore yuan (CNH) has reached its highest level since early November last year, as the People’s Bank of China (PBOC) takes steps to manage the currency’s appreciation against the U.S. dollar. The PBOC set the USD/CNY reference rate for today at 7.1833, which was higher than the estimated rate of 7.1737. This move is part of the central bank’s efforts to prevent the yuan from rising too quickly.
China’s yuan also edged up on Wednesday, supported by the latest economic stimulus measures from Beijing. The government cut benchmark lending rates for the first time since October and major state banks lowered deposit rates.
Yuan rises with economic measures
PBOC Governor Pan Gongsheng pledged to implement an “appropriately loose” monetary policy to support key areas such as technological innovation, consumption, and private small businesses. These actions are aimed at strengthening China’s economic resilience amid ongoing international tensions and market fluctuations. The movement of the yuan is being closely watched as a barometer for the country’s economic health and policy direction.
As global markets react to these developments, the interplay between the U.S. dollar and the Chinese yuan remains a focal point for investors and policymakers. The broader economic implications of these monetary adjustments will continue to unfold in the coming weeks.
