USD/CNY fix: 6.8643 vs. the estimate of 6.8655

In recent trade today, the People’s Bank of China (PBOC) set the yuan at 6.8643 compared with the last close of 6.8661.

The PBoC also set the LPR 1-year and 5-year both as unchanged and sold 270b Yuan in a 7-day reverse repo at 2% while injecting a net 224b Yuan.

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.