The People’s Bank of China (PBOC) set the USD/CNY reference rate at 6.9468 on Tuesday when compared to the previous fix and the previous close at 6.9488 and 7.0050 respectively. It should be noted that the PBOC fix eased below the market forecasts of 6.9483.

In addition to the rate announcement, Reuters also conveyed that with 2 billion yuan worth of reverse repos maturing on Tuesday, China central bank injects 24 billion yuan on a net basis on the day.

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.