20.04.202602:20:42UTC+00Offshore Yuan Steady After PBOC Decision

The offshore yuan traded steadily around 6.81 per dollar on Monday, hovering near its strongest level since February 2023, after China left its key lending benchmarks unchanged. The one-year Loan Prime Rate (LPR) was maintained at 3.0%, while the five-year LPR stayed at 3.5%, marking the eleventh consecutive month without adjustment. The decision underscores a cautious stance by policymakers. Although deflationary pressures have begun to ease and the economy has shown early signs of resilience this year, authorities remain wary of external risks, including persistent tensions in the Middle East. Recent developments include the US seizure of an Iranian cargo ship over alleged sanctions violations, as well as Iran’s indication that it will not participate in a second round of talks that Washington had anticipated before a temporary ceasefire deadline. Even so, the central bank has reaffirmed its commitment to a “supportive” and “moderately loose” monetary policy aimed at sustaining growth while preserving currency and financial stability.