PBOC sets USD/CNY reference rate at 6.9798 on Thursday

The People’s Bank of China (PBOC) set the USD/CNY reference rate at 6.9798 on Thursday when compared to the previous fix and the previous close at 6.9536 and 7.0489 respectively. It should be noted that the PBOC fix eased below the market forecasts of 6.9946.

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.