On July 1, 2025, the People's Bank of China (PBOC) set the official yuan midpoint at 7.1534 per dollar, its strongest level since November 8, 2024. This rate is slightly weaker than market estimates.
The yuan's performance is influenced by escalating trade tensions between the United States and China, particularly tariffs announced by President Donald Trump in April 2025. China has considered devaluing its currency in response to these tariffs.
The PBOC's actions reflect its efforts to manage the yuan's value amid ongoing trade disputes. The yuan's exchange rate remains a critical factor in China's economic strategy.