China’s central bank, PBoC, set the yuan’s reference exchange rate at 7.1889 per USD, stronger than expected, in an effort to prevent rapid depreciation. Despite the yuan falling to a two-month low in offshore trading following President Trump’s announcement of additional tariffs on Chinese goods, the PBOC’s move suggests a desire to stabilize the currency. The support for the yuan is closely monitored, as a weaker yuan could help China offset US tariffs but may also harm investor confidence.