PBOC sets USD/CNY reference rate at 7.0157 vs. 7.0356 previous

Anil Panchal FXStreet

People’s Bank of China (PBOC) set the USD/CNY central rate at 7.0157 on Monday, versus previous fix of 7.0356 and market expectations of 7.0141. It's worth noting that the USD/CNY closed near 7.0140 the previous day.

“With 2 billion Yuan worth of reverse repos maturing on Monday, China central bank makes no fund injection or withdrawal on a net basis on the day,” said Reuters following the PBOC Fix announcements.

About PBOC 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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