People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1406 on Tuesday, versus the previous fix of 7.1451 and market expectations of 7.1860. It's worth noting that the USD/CNY closed near 7.1882 the previous day.

Earlier in the day, Reuters came out with the news stating that the PBoC 3-month central bank bills swap worth 5 billion Yuan on Tuesday.

Apart from the USD/CNY fix, the PBoC also unveiled details of its Open Market Operations (OMO) while saying that the Chinese central bank injects 44 billion Yuan via 7-day reverse repos (RRs) at 1.90% vs prior 1.90%.

However, the 15 billion Yuan of RRs mature today, which in turn suggests a net 29 billion Yuan injection on the day in OMOs.

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.