PBOC sets USD/CNY reference rate at 7.2046 vs. 7.2157 previous

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.2046 on Tuesday, versus previous fix of 7.2157 and market expectations of 7.2386. It's worth noting that the USD/CNY closed near 7.2450 the previous day. With this, the Chinese central bank's onshore Yuan (CNY) rate extends the previous day's retreat from the yearly top.

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.