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ForexMediumUpdated•Originally published 5 November 2026•Updated 5 November 2026•
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PBOC Withdraws 609.5B Yuan and Sets Weaker Currency Reference Rate

Key Facts

1The PBOC set the USD/CNY reference rate at 6.7156, which was weaker than the market estimate of 6.6783.
2The central bank conducted a net liquidity withdrawal of 609.5 billion yuan from the financial system today.

The People's Bank of China (PBOC) conducted a net liquidity withdrawal of 609.5 billion yuan from the financial system today, November 5, 2026. According to investinglive.com, the central bank set the USD/CNY reference rate at 6.7156, which was weaker than the market estimate of 6.6783.

This move follows a period of yuan strength and reflects the central bank's management of liquidity as significant reverse repo operations matured. Recent economic data showed mixed performance, with the Services PMI reaching 50.8 on November 4, 2026, and the Caixin Manufacturing PMI at 52 on November 2, 2026.

China is scheduled to release key inflation data on November 9, 2026, including the annual Inflation Rate and the Producer Price Index, followed by the Balance of Trade, Exports, and Imports on November 10, 2026.

Latest Updates · 1

  1. Notable·

    Update: The People's Bank of China expanded the digital yuan to overseas lenders on November 5, 2026. This initiative aims to deepen cross-border flows and facilitate international transactions using the central bank's digital currency.

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