PBOC sets USD/CNY reference rate at 6.9054 vs. 6.9249 previous

People’s Bank of China (PBOC) set the USD/CNY central rate at 6.9054 on Thursday, versus previous fix of 6.9249 and market expectations of 6.9061. It's worth noting that the USD/CNY closed near 6.9179 the previous day.

In addition to the daily USD/CNY fix, the PBOC conveys details of the Open Market Operations (OMO), suggesting an injection of 33 billion Yuan via 7-day reverse repos at 2.0% rate.

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.