China's Central Bank Bolsters Yuan Defense Amidst Record Low and Market Turmoil

China's central bank, the People's Bank of China, has increased its intervention in the foreign exchange market after the onshore yuan hit a 16-year low against the US dollar. The central bank set the yuan midpoint at a rate stronger than Reuters' estimate for the second consecutive day, and state banks were seen selling US dollars to buy yuan in an effort to slow the currency's depreciation. The central bank aims to maintain the stability of the yuan exchange rate and prevent excessive volatility.