PBOC sets USD/CNY reference rate at 7.2098 vs. 7.2056 previous

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People’s Bank of China (PBoC) set the USD/CNY central rate at 7.2098 on Tuesday, versus previous fix of 7.2056 and market expectations of 7.2194. It’s worth noting that the USD/CNY closed near 7.2425 the previous day. With this, the Chinese central bank sets the onshore Yuan (CNY) rate at the lowest levels since November 2022. 

Together with the USD/CNY fix, the PBoC also said that it will inject  219 billion Yuan via 7-Day Reverse Repos at 1.9% in Open Market Operations (OMOs).

Earlier in the day, Reuters conveyed that the Chinese central bank will conduct five bullion Yuan 3-month central bank bill swap on June 27.

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.

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• Source: https://www.fxstreet.com/news/pboc-sets-usd-cny-reference-rate-at-72098-vs-72056-previous-202306270121