Key Moments
- The People’s Bank of China set Monday’s USD/CNY central parity at 6.7188, slightly above the prior session’s 6.7168 level.
- The central rate announcement applies to the upcoming trading session, providing the official reference level for onshore yuan trading.
- The report was corrected on November 9 at 1:45 GMT to clarify that the fixing took place on Monday, not Friday.
Latest USD/CNY Central Parity Fix
On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the upcoming trading session at 6.7188. This compares with the previous day’s reference rate of 6.7168.
| Fixing Day | USD/CNY Central Rate |
|---|---|
| Previous day | 6.7168 |
| Monday (current fix) | 6.7188 |
(The story was corrected on November 9 at 1:45 GMT to start the first line with saying “On Monday, and not Friday”.)
PBOC – Mandate and Role
The primary monetary policy objectives of the People’s Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market.
Ownership and Governance Structure
The PBoC is owned by the state of the People’s Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Key Monetary Policy Instruments
Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi.
Private Banking in China
Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated 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 
