The People's Bank of China sets the dollar exchange rate at 7.1887 yuan
The People's Bank of China decided on Wednesday morning to set the yuan exchange rate against the US dollar at 7.1887 yuan per dollar, and expectations indicated that it would be challenged at 7.3435 yuan. The pair's closing price yesterday was 7.3284 yuan. The bank also pumped 1.1 billion yuan into the market through 7-day repurchase operations, with a return of 1.5%.
It is worth noting 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 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 a margin of movement for the Chinese currency to move within a narrow range.
The Bank of China manages the value of the yuan by keeping it fixed against a basket of currencies of countries that are considered partners of China, and the basket is measured by the dollar price USD given that the United States is China's largest trading partner.