PBOC sets USD/CNY reference rate at 6.8764 vs. 6.8838 previous

People’s Bank of China (PBOC) set the USD/CNY central rate at 6.8764 on Monday, versus Friday's fix of 6.8838 and market expectations of 6.8739. It's worth noting that the USD/CNY closed near 6.8676 the previous day.

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.