The People's Bank of China (PBOC) has set the yuan reference rate at 7.0995 per dollar, marking the strongest fixing in almost a year. This move aims to stabilize the currency and deter speculative selling amid ongoing trade tensions with the United States. The decision reflects a strategic effort to limit the yuan's depreciation and bolster its international standing. Analysts from major financial institutions, including Goldman Sachs and Bank of America, anticipate a gradual appreciation of the yuan, potentially reaching 6.7 by 2027. However, they caution that structural factors may constrain immediate gains.