PBOC sets USD/CNY reference rate at 7.1596 vs. 7.1201 previous

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1596 on Tuesday, versus previous fix of 7.1201 and market expectations of 7.1630. It's worth noting that the USD/CNY closed near 7.1620 the previous day.

It should be noted that the PBoC also cuts its benchmark Loan Prime Rates (LPRs) by 10 basis points (bps).

Also read: PBOC cuts one-year, five-year LPR by 10 basis points to 3.55%, 4.20% respectively

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.