Headline: PBOC Sets USD/CNY Midpoint at 7.0866, Stronger Than Forecast
The People’s Bank of China set the daily USD/CNY central parity rate at 7.0866, coming in stronger than the market estimate of 7.1204. The firmer fixing underscores ongoing efforts to steady the renminbi as onshore trading gets underway.
Under China’s managed floating exchange rate system, the PBOC announces a daily midpoint that guides yuan trading within a band of plus or minus 2%. This central parity rate serves as the key reference for banks, corporates, and investors in pricing transactions and managing currency risk throughout the session.
Today’s fixing arrives against a previous onshore close of 7.1185, signaling a preference for a stronger yuan relative to recent spot levels. A tighter, stronger-than-expected midpoint typically indicates policy intent to temper depreciation pressure and stabilize currency markets, a cue closely watched by forex traders across USD/CNY and broader Asian FX.
Key Points – PBOC set the USD/CNY central parity at 7.0866, stronger than the 7.1204 estimate – The yuan trades within a ±2% band around the daily fixing under China’s managed float – Previous onshore close was 7.1185 – Stronger fixing suggests continued policy support for currency stability – Rate serves as the primary reference for onshore CNY trading and risk management
