PBOC sets USD/CNY reference rate at 6.7808 vs. 6.7854 previous
The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7808 compared to the previous day's fix of 6.7854 and 6.7196 Reuters estimate.
On Thursday, the People's Bank of China (PBOC) determined the USD/CNY central rate at 6.7808, a slight decrease from the previous day's rate of 6.7854, and below the Reuters estimate of 6.7196. The PBOC's primary objectives are maintaining price stability, including exchange rate stability, and fostering economic expansion. As a state-owned institution, it operates under the influence of the Chinese Communist Party Committee Secretary, appointed by the State Council Chairman, rather than the elected governor.
The PBOC employs a range of monetary policies, such as the Reverse Repo Rate, Medium-term Lending Facility, foreign exchange interventions, and Reserve Requirement Ratio, to achieve its goals. However, the Chinese Renminbi's exchange rate can be influenced by alterations to the Loan Prime Rate, the central bank's benchmark interest rate.
China's financial sector comprises 19 private banks, primarily digital lenders WeBank and MYbank, backed by tech giants Tencent and Ant Group. In 2014, China permitted state-subsidized lenders with private capital to operate within the predominantly state-controlled financial system.
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