#USDCNY @ 6.98987 PBOC sets reference rate at 6.9793 vs. 6.9681 previous
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On Thursday, the People’s Bank of China (PBOC) set the USD/CNY central rate at 6.9793 versus Wednesday’s fix of 6.9681 and market expectations of 6.9791. That said, the PBOC also announced a 5 billion Yuan of 3-month bill swap earlier in the day.
“With 4 billion Yuan worth of reverse repos maturing on Thursday, China central bank injects 201 billion Yuan on a net basis on the day,” mentioned Reuters.
It’s worth noting that the USD/CNY closed near 6.9780 the previous day, marching towards 6.9800 by the press time.
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.
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