PBOC sets USD/CNY reference rate at 6.7120 on Monday

The People’s Bank of China (PBOC) sets the USD/CNY reference rate at 6.7120 on Monday, compared to the previous close at 6.7160 and Friday's PBOC fix of 6.6923. It's worth noting that markets expected 6.7073 as a fix for the day.

PBOC injects 10 billion yuan via 7-day reverse repos at 2.10% vs prior 2.10%, said the statement per Reuters. 

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.