Key Moments
- The People’s Bank of China set Monday’s USD/CNY central parity at 6.7884.
- The new fixing compared with Friday’s reference rate of 6.7904.
- The official level differed from a Reuters estimate of 6.7379.
Latest USD/CNY Fixing
On Monday, the People’s Bank of China (PBOC) set the central parity rate for USD/CNY at 6.7884 for the upcoming trading session. This followed Friday’s reference rate of 6.7904 and stood against a Reuters estimate of 6.7379.
| Fixing Detail | USD/CNY Level |
|---|---|
| Monday’s central rate | 6.7884 |
| Friday’s central rate | 6.7904 |
| Reuters estimate | 6.7379 |
Mandate and Role of the PBOC
The People’s Bank of China serves as the country’s central bank, with core monetary policy goals that include maintaining price stability, supporting exchange rate stability, and fostering economic growth. The institution also pursues financial sector reforms, such as advancing the opening and development of domestic financial markets.
Ownership and Governance Structure
The PBOC is owned by the state of the People’s Republic of China, and it is not regarded as an independent institution. Governance is heavily influenced by the Chinese Communist Party (CCP) Committee Secretary, who is nominated by the Chairman of the State Council and plays a central role in setting management direction, rather than the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Key Policy Instruments
The PBOC employs a wide range of tools to conduct monetary policy. These include a seven-day Reverse Repo Rate, the Medium-term Lending Facility, foreign exchange market interventions, and adjustments to the Reserve Requirement Ratio. In addition, the Loan Prime Rate functions as China’s benchmark interest rate. Movements in the Loan Prime Rate directly affect borrowing and mortgage costs, as well as returns on savings, and can also influence the exchange rate of the Chinese Renminbi.
Private Banking Landscape in China
Private banks operate within China’s financial system, though they represent a relatively small share. There are 19 private banks, with major players including digital lenders WeBank and MYbank, which are backed by Tencent and Ant Group, according to The Straits Times. In 2014, authorities permitted domestically funded lenders fully capitalized by private capital to participate in the predominantly state-controlled financial sector.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
