The People’s Bank of China sets the yuan exchange rate at 6.3963 dollars

The People’s Bank of China Monday morning fixed the yuan’s exchange rate against the US dollar at 6.3963 dollars. This is compared to the yuan exchange rate set last Friday at $6.4072. The bank also injected new money into the 7-day repurchase market worth 10 billion yuan.

It is worth noting 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.