PBOC sets USD/CNY reference rate at 6.9546 vs. 6.9825 previous

On Tuesday, the People’s Bank of China (PBOC) set the USD/CNY central rate at 6.9546 versus Monday's fix of 6.9825 and market expectations of 6.9555.

It's worth noting that the USD/CNY closed near 6.9634 on the previous day, taking  rounds to the same by the press time.

Additionally important to note is that the PBOC marked the biggest weekly cash injection in two months by the end of Friday.

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.