PBoC leavs rates unchanged, as expected, fixes USD/CNY at 6.3401 vs last close 6.3257

The People's Bank of China left their 5-year loan prime rate unchanged at 4.60%, as expected and the 1-year loan prime rate unchanged at 3.70%, as expected.

The central bank also sets the yuan mid-point at 6.3401 vs the last close of 6.3257.

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.