PBOC Cuts Yuan Fixing for Third Consecutive Day to 6.8195
Alina Collins
The PBOC set the yuan midpoint at 6.8195 on June 24, weakening it for a third consecutive session — pushing back against appreciation even as senior international officials call the currency undervalued.
Three straight cuts — what is the PBOC doing?
The June 24 fixing came in at 6.8195, weaker than the prior day's 6.8171.
On June 15, the midpoint had hit 6.8088, a three-year high, before the central bank began steering it lower.
This means → the PBOC is actively braking yuan strength at the very moment the market wants to bid it up.
The market pulls one way, the PBOC pulls the other — who wins?
Onshore yuan opened about 0.05% stronger in early trade, moving against the weaker fixing.
Offshore yuan traded near 6.79, weaker than the onshore rate, reflecting more cautious sentiment abroad.
In plain terms = domestic traders want to buy yuan; the PBOC's fixing pulls the other way. Offshore markets side with the central bank — less optimistic on near-term gains.
International officials say the yuan is undervalued — why not let it rise?
The ECB president and other senior international officials have recently said the yuan is undervalued.
Yet the PBOC favors a prudent stance, actively preventing rapid appreciation.
This reflects a clear priority: export competitiveness and controllable capital flows matter more to the central bank than headline exchange-rate levels.
Where does the yuan end the year?
Bank J. Safra Sarasin's latest forecast puts yuan at 6.50 per dollar by year-end.
From the current level near 6.82, that implies roughly 4.7% of appreciation ahead.
This means → institutions are betting on direction — long-term appreciation. The PBOC is managing pace — no sudden jumps. The two are not contradictory, but in the short run the central bank sets the tempo.
Content is for reference only, not financial advice.