PBOC sets USD/CNY reference rate at 7.2208 vs. 7.2101 previous

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.2208 on Thursday, versus previous fix of 7.2101 and market expectations of 7.2540. It's worth noting that the USD/CNY closed near 7.2390 the previous day. With this, the Chinese central bank's onshore Yuan (CNY) rate prints the lowest levels since November 2022. 

It's worth noting taht the PBoC's lower-than-expected USD/CNY fix previously weighed on the US Dollar and allow the CNY to pare recent losses near the yearly high.

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.