PBOC Sets Strongest Yuan Fix Since Feb 2023 and Injects 115B Liquidity

Key Facts

The People's Bank of China (PBOC) set the USD/CNY reference rate at 6.7147 on October 29, 2026. According to investinglive.com, this setting marks the strongest level for the Yuan since February 2023, as the central bank moves to manage currency volatility and ensure sufficient liquidity within the financial system.

The central bank conducted a net liquidity injection of 115 billion yuan through reverse repurchase operations to balance maturing repo obligations. These monetary actions follow recent data from October 22, 2026, which showed Year-to-Date Foreign Direct Investment at -4.3%, an improvement from the previous -5.3%.

China is scheduled to release its Manufacturing PMI and Non-Manufacturing PMI on October 31, 2026, with forecasts set at 50 and 50.5 respectively, providing further direction for the economy following these central bank interventions.