PBOC sets USD/CNY reference rate at 7.1795 vs. 7.1596 previous

Anil Panchal FXStreet

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1795 on Wednesday, versus previous fix of 7.1596 and market expectations of 7.1802. It's worth noting that the USD/CNY closed near 7.1821 the previous day.

Apart from the fix, the Chinese central bank (PBoC) also shared details of the money market operations by saying that the PBoC injects a net 143 buillion Yuan at 1.9% rate.

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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