PBOC Employs Volatile Yuan Fixing to Manage Iran War Fallout

China’s central bank is signaling an increased tolerance for yuan flexibility, a sign of confidence it can insulate the currency from market turmoil triggered by the Iran war.

The 30-day volatility of the yuan’s daily reference rate set by the People’s Bank of China climbed to its highest since December 2024 this week, according to data compiled by Bloomberg.