The People’s Bank of China (PBOC) set the yuan (CNY) reference rate at 6.7411 versus the previous release of 6.7731, while crossing the market expectations of 6.7425 during Thursday's Asian session. It should be noted that the USD/CNY closed at 6.7570 the previous day.
"With 3 billion yuan worth of reverse repos maturing on Thursday, China central bank drains 1 billion yuan on a net basis on the day," per Reuters.
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 closing level and quotations taken from the inter-bank dealer.
