PBOC sets USD/CNY reference rate at 6.8882 vs. 6.8764 previous

People’s Bank of China (PBOC) set the USD/CNY central rate at 6.8882 on Tuesday, versus Monday's fix of 6.8764 and market expectations of 6.8884. It's worth noting that the USD/CNY closed near 6.8811 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.