PBOC sets USD/CNY reference rate at 7.1466 vs. 7.1486 previous

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1466 on Thursday, versus the previous fix of 7.1486 and market expectations of 7.2233. It's worth noting that the USD/CNY closed near 7.2240 the previous day.

It should be noted that the PBoC kept its benchmark Loan Prime Rates (LPRs) unchanged during today's Interest Rate Decision. That said, the one-year and five-year LPRs are held intact at 3.55% and 4.20% respectively at the latest.

Also read: PBOC leaves Loan Prime Rates unchanged, as expected

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.