On Thursday morning, the People's Bank of China decided to set the exchange rate of the yuan against the US dollar at 7.1691 yuan per dollar, while expectations were to set it at 7.2535 yuan. The closing price of the pair in yesterday's session was 7.2720 yuan. The bank also injected 697 billion yuan into the markets through 7-day repurchase operations, with a yield of 1.5%.
It is worth noting that the People's Bank of China influences the price of the US dollar (USD) by pegging the value of its currency - the yuan - to the dollar. The bank employs a fixed exchange rate policy by managing the value of the yuan, keeping it stable against a basket of currencies from countries considered partners to China. This basket is measured by the US dollar (USD) since the United States is China's largest trading partner.
