PBOC sets USD/CNY reference rate at 7.1968 vs. 7.2046 previous

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1968 on Wednesday, versus previous fix of 7.2046 and market expectations of 7.2180. It's worth noting that the USD/CNY closed near 7.2170 the previous day. With this, the Chinese central bank's onshore Yuan (CNY) rate extends the week-start pullback from the yearly top.

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.