Bank of China sets yuan exchange rate at $6.4032

 On Friday morning, the People's Bank of China set the yuan's exchange rate against the US dollar at 6.4032 yuan per dollar. At the same time, expectations were for the Chinese yuan to stabilize against the dollar at 6.4030 yuan per dollar.

It should be noted that the Bank of China influences the price of the US dollar USD by linking the value of its currency - the yuan - to the currency of the dollar USD, as the bank uses a fixed exchange rate policy, which differs from the free exchange rate used by the United States and many other countries, while leaving Margin of movement for the currency of China to move in a narrow range.

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.