PBOC fixes USD/CNY reference rate at 6.3677 versus 6.3425 prior

Early Monday in Asia, the People’s Bank of China (PBOC) set the yuan (CNY) reference rate at  6.3677 versus the previous release of 6.3425, also crossing the market expectations of 6.3584.

The PBOC is up for publishing the Interest Rate Decision in a few minutes and is likely to keep the monetary policy unchanged considering the last week's inaction over the Medium-Term Liquidity Facility (MLF) rate.

Read: PBOC seen unlikely to change reverse repo rate in March – China Press

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 closing level and quotations taken from the inter-bank dealer.