USDCNY fix:  7.0421 vs the previous fix 7.0899 and prior close of 7.0710

In recent trade today, the People’s Bank of China (PBOC) set the yuan (CNY) at 7.0421 vs the previous fix 7.0899 and prior close of 7.0710.

at the same time, the central bank injectedCNY172Bln Via 7 Day Reverse Repos at 2.0% in open market ops and 850bn yuan via a 1-year MLF, with rate unchanged at 2.75% with 1 trillion yuan maturing MLF.

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.