The People's Bank of China sets the exchange rate of the dollar at 7.1016 yuan.

On Tuesday morning, the People's Bank of China decided to set the exchange rate of the yuan against the US dollar at 7.1016 yuan per dollar. Expectations were for it to be set at 7.1019 yuan. The closing price of the pair in yesterday's session was 7.1011 yuan. The bank also injected 18 billion yuan into the markets through seven-day repurchase agreements at an interest rate of 1.5%.

It's noteworthy that the People's Bank of China influences the value of the US dollar by pegging its currency - the yuan - to the dollar, using a fixed exchange rate policy. This differs from the floating exchange rate used by the United States and many other countries, allowing the Chinese currency to fluctuate within a narrow range.

The People's Bank of China manages the value of the yuan by keeping it stable against a basket of currencies from countries considered to be partners of China. This basket is measured against the price of the US dollar since the United States is China's largest trading partner.