The people’s Bank of China sets the dollar / yuan rate at 7.1283

The people’s Bank of China decided on Tuesday morning to set the yuan exchange rate against the US dollar at the level of 7.1283 yuan per dollar, which is much lower than expectations indicating that it recorded 7.1495 yuan, and the previous closing price of the yuan pair reached 7.1435 yuan, the bank also pumped 8 billion yuan in repurchases in the markets for 7 days, with a return of 1.9%.

It should be noted that the Bank of China influences the USD / USD rate by pegging the value of its currency – the yuan – to the USD / USD currency, 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, while leaving a margin of movement for China’s currency to move in a narrow range.

The Bank of China manages the value of the yuan by keeping it constant against a basket of currencies of countries that are China’s partners. The basket is measured at the dollar-USD rate given that the United States is China’s largest trading partner.