PBOC sets USD/CNY reference rate at 6.6923 on Friday

Anil Panchal FXStreet

The People’s Bank of China (PBOC) sets the USD/CNY reference rate at 6.6923 on Friday, compared to the previous close at 6.7034 and Thursday's PBOC fix of 6.7099. It's worth noting that markets expected 6.6933 as a fix for Friday.

PBOC injects 10 billion yuan via 7-day reverse repos at 2.10% versus prior 2.10%, said the statement per Reuters. The update also mentioned that the Chinese central bank makes no fund injection or withdrawal on a net basis for the week via open market operations.

About the fix

China maintains strict control of the yuan’s rate on the mainland.

The onshore yuan (CNY) differs from the offshore one (CNH) in trading restrictions, this last one is not as tightly controlled.

Each morning, the People’s Bank of China (PBOC) sets a so-called daily midpoint fix, based on the yuan’s previous day's closing level and quotations taken from the inter-bank dealer.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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