Chinese authorities have directed state-owned banks to enhance their intervention in the currency market to mitigate recent volatility in the local currency. Officials are also investigating whether domestic firms have spurred the yuan weakening through speculative trades. The PBoC fixed the reference rate at 7.2006 per USD, and If necessary, the bank has multiple tools at its disposal to combat any bearish outlook on the yuan, including altering the cost of betting against the yuan using derivatives.