People’s Bank of China (PBoC) set the USD/CNY central rate at 7.1326 on Monday, versus the previous fix of 7.1318 and market expectations of 7.1386. It’s worth noting that the USD/CNY closed near 7.1415 the previous day.
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 103 billion Yuan via the one-year Medium-term Lending Facility (MLF) rate of 2.65% (keeping it unchanged).
With the 100 billion worth of RRs matring on Monday, the PBoC’s OMO appears net long for 3 billion for the day.
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.
Source: https://www.fxstreet.com/news/pboc-sets-usd-cny-reference-rate-at-71326-vs-71318-previous-202307170116