People’s Bank of China
The People’s Bank of China decided this morning, Monday, to set the exchange rate of the yuan against the US dollar at the level of 7.1856 yuan per dollar, while expectations were that it would be recorded at 7.2854 yuan. Buy back in the markets for 7 days, with a return of 1.8%.
It should be noted that the Bank of China influences the price of the US dollar USD by linking the value of its currency – the yuan – to the dollar currency USD, as the bank uses a fixed exchange rate policy, which differs from the free exchange rate used by the United States and many other countries, leaving margin of movement for the Chinese currency to move in a narrow range.
The Bank of China manages the value of the yuan by keeping it steady against a basket of currencies of countries that are partners of China. The basket is measured in USD, given that the United States is China’s largest trading partner.
2023-08-28 04:46:36
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