The People’s Bank of China sets the yuan exchange rate at 6.3956 dollars56

The People’s Bank of China Wednesday morning fixed the yuan’s exchange rate against the US dollar at 6.3956 dollars. This compares with the yuan’s exchange rate set on Tuesday at 6.3909 US dollars. The bank also injected new money into the 7-day repurchase market worth 10 billion yuan.

It is reported that the Bank of China influences the price of the dollar USD by linking the value of its currency – the yuan – to the currency of the dollar USD. The bank uses a fixed exchange rate policy, which differs from the floating exchange rate used by the United States and many other countries.

The Bank of China manages the value of the yuan by keeping it fixed against a basket of currencies of countries that are China’s partners. The basket is measured at USD, given that the United States is China’s largest trading partner.