PBOC sets USD/CNY reference rate at 6.7743 vs. 6.7766 previous
On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7743 compared to the previous day's fix of 6.7766 and 6.7174 Reuters estimate.
The People's Bank of China (PBOC) set the USD/CNY central reference rate for the trading session at 6.7743 on Friday, slightly lower than the previous day's rate of 6.7766 and the estimated 6.7174. China's central bank focuses on maintaining price stability, including exchange rate stability, while fostering economic growth. The PBOC, owned by the state, is not autonomous and is influenced by the Chinese Communist Party Committee Secretary, appointed by the State Council Chairman.
The central bank employs a range of monetary policy instruments, such as the seven-day Reverse Repo Rate, Medium-term Lending Facility, foreign exchange interventions, and Reserve Requirement Ratio. The Loan Prime Rate, or LPR, serves as the benchmark interest rate, directly impacting loan, mortgage, and savings rates. By adjusting the LPR, the PBOC can influence the exchange rates of the Chinese Renminbi.
China has 19 private banks, with digital lenders WeBank and MYbank being the largest, supported by tech giants Tencent and Ant Group. In 2014, China permitted state-backed lenders with private capital to operate within the state-dominated financial system.
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