PBoC interest rate unchanged, USD/CNY fixed at 6.7871 vs. estimate at 6.7852

In recent trade today, the People’s Bank of China (PBOC) left the 1-year MLF interest rate unchanged at 2.85% and set the yuan (CNY) at 6.7871 vs the previous fix 6.7898 and previous close of 6.7900.

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 closing level and quotations taken from the inter-bank dealer.