The People's Bank of China (PBOC) has set the USD/CNY reference rate at 7.1688, which is notably stronger than the market expectation of 7.2199. This marks the strongest yuan mid-point since November 2024. The PBOC's action comes alongside a significant liquidity injection, as it conducted 481 billion yuan in 7-day reverse repos, injecting a net 384.5 billion yuan into the market. This operation is the largest single-day injection since February 5, when 574 billion yuan was injected. The reverse repos were conducted at an interest rate of 1.5%, consistent with previous statements. The PBOC's liquidity measures are aimed at stabilizing the market amid ongoing economic concerns.