July 28, 2022 - 11:53 AM 218 views
During Thursday's Asian session, the People's Bank of China (PBOC) fixed the Yuan (CNY) reference rate at 6.7411 as opposed to the previous release of 6.7731, while also above market estimates of 6.7425. It should be remembered that the USD/CNY ended the prior day at 6.7570.
According to Reuters, the China central bank loses 1 billion Yuan net on the day as reverse repos worth 3 billion Yuan mature on Thursday.
About the Fixation
On the mainland, China maintains tight control over Yuan exchange rates.
The offshore Yuan (CNH), which is less heavily regulated than the onshore Yuan (CNY), has different trading regulations.
The People's Bank of China (PBOC) establishes a so-called daily midpoint fix every morning based on the Yuan's closing level from the previous day and quotes obtained from the inter-bank dealer.
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