#USDCNY @ 6.88388 PBOC sets reference rate at 6.8838 vs. 6.8747 previous
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People’s Bank of China (PBOC) set the USD/CNY central rate at 6.8838 on Friday, versus Thursday’s fix of 6.8747 and market expectations of 6.8820. It’s worth noting that the USD/CNY closed near 6.8745 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 a net 1.132 trillion Yuan on the day, per Reuters calculations.
Further details of the PBOC update suggests that the Chinese central bank held 7-day Repo Rate unchanged at 2.0% at Friday’s 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.
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