PBOC sets USDCNY reference rate at 6.9588 vs. 6.9606 previous

On Friday, the People’s Bank of China (PBOC) set the USD/CNY central rate at 6.9588 versus Thursday's fix of 6.9606 and market expectations of 6.9604.

It's worth noting that the USD/CNY closed near 6.9649 on the previous day, taking  rounds to the same by the press time.

The aforementioned readings appear important as China Premier, Li Keqiang said on Thursday, “Will keep yuan exchange rate basically stable.”

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.