PBOC sets USD/CNY reference rate at 7.0904 vs. 7.0939 previous

People’s Bank of China (PBOC) set the USD/CNY central rate at 7.0904 on Monday, versus previous fix of 7.0939 and market expectations of 7.0918. It's worth noting that the USD/CNY closed near 7.0960 the previous day.

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.