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      People's Bank of China Sets USD/CNY Mid-Point at 6.7200

      The People's Bank of China (PBOC) has established the mid-point for the USD/CNY exchange rate at 6.7200, which is significantly higher than the market estimate of 6.6813. This adjustment reflects the PBOC's policy of allowing the yuan to fluctuate within a +/- 2% range around the reference rate.

      In addition to the exchange rate setting, the PBOC has opted to maintain zero 7-day reverse repos, resulting in a net drain of 65 billion yuan as these repos mature. This decision comes as the central bank shifts its focus towards short-term interest rates, particularly in light of recent economic data.

      China has held its loan prime rates steady for the 17th consecutive month, indicating a cautious approach to monetary policy amid ongoing economic challenges. Analysts expect that the PBOC will continue to prioritize short-term rates as a key tool for managing economic conditions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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