Chinese Yuan Hits 10-Month High as Central Bank Boosts Fixing

• The Chinese Yuan surged to a 10-month high, reaching 6.8750 per dollar, its strongest since mid-May 2025.
• China's central bank delivered a stronger-than-expected reference rate, signaling comfort with appreciation before the National People’s Congress.
• The People’s Bank of China (PBOC) removed a surcharge on bets against the currency, indicating official comfort with measured appreciation.
• PBOC cut the foreign exchange risk reserve ratio on forward currency sales from 20% to zero, effective Monday, to temper the yuan's rapid rise.
• Analysts believe this counter-cyclical measure will reduce hedging costs for companies and stabilize forex market sentiment.