PBOC sets USD/CNY reference rate at 6.8265 vs. 6.8912 previous

Anil Panchal FXStreet

People’s Bank of China (PBOC) set the USD/CNY central rate at 6.8265 on Monday, versus Friday's fix of 6.8912 and market expectations of 6.8276. In doing so, the PBOC propels the CNY rate by the most in 30 days.

It's worth noting that the USD/CNY closed near 6.8235 the previous day.

In addition to the USD/CNY fix, the PBOC also released data for the Open Market Pperations (OMO) that suggest the Chinese central bank drained net 41 billion Yuan on the day, per Reuters calculations.

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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