PBOC sets USD/CNY reference rate at 6.9468 on Tuesday

The People’s Bank of China (PBOC) set the USD/CNY reference rate at 6.9468 on Tuesday when compared to the previous fix and the previous close at 6.9488 and 7.0050 respectively. It should be noted that the PBOC fix eased below the market forecasts of 6.9483.

In addition to the rate announcement, the PBoC also unveiled decision to inject 2 billion Chinese Yuan via 7-day reverse repos at 2% in open market operations.

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.