The People's Bank of China decided on Wednesday morning to set the exchange rate of the yuan against the US dollar at 7.1705 yuan per dollar, while predictions indicated it would be set at 7.2807 yuan. The closing price of the pair in yesterday's session was 7.2733 yuan. Additionally, the bank injected 538.9 billion yuan in repurchase operations in the market for 7 days, at 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 USD. The bank employs a fixed exchange rate policy by managing the value of the yuan to keep it stable against a basket of currencies from countries that are considered partners of China. This basket is measured against the dollar USD since the United States is China's largest trading partner.
Read more about The People's Bank of China sets the exchange rate of the dollar... - News source:https://www.arabictrader.com/en/news/central-banks/176846
