ForeXistenZ › Central banks › PBOC

Beijing · Central bank · CNY

People's Bank of China (PBOC)

Photo: Pixabay · 📷 1000 1011 0001 1001 — free for commercial use.

CNYUSD/CNY

Sets the daily reference rate of the yuan and is one of the world’s biggest buyers of gold.

How the PBOC moves the CNY

A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a PBOC decision are among the most volatile of the month for the CNY. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.

SeatBeijing, China
CurrencyCNY
Watched throughUSD/CNY
Official sitewww.pbc.gov.cn/en

Frequently asked

What does the People's Bank of China do?

Sets the daily reference rate of the yuan and is one of the world’s biggest buyers of gold.

Where is the People's Bank of China?

The People's Bank of China (PBOC) is in Beijing, China.

Why do forex traders watch the PBOC?

Interest rates are the price of a currency. When the PBOC raises or cuts rates — or only hints at it — money moves into or out of the CNY, and USD/CNY reacts within seconds.

Where are the PBOC’s decisions published?

Official decisions, statements and the meeting calendar are published on http://www.pbc.gov.cn/en.

PAUL · ACADEMY CONSOLE

Ask PAUL

Ask PAUL what a lesson covers and hear his preview. Members learn every lesson in full with FX AI — education only, never a signal.

Other central banks

BOK

Bank of Korea

Seoul, South Korea — Sets rates for the won, one of Asia’s most traded currencies.

HKMA

Hong Kong Monetary Authority

Hong Kong, Hong Kong SAR — Defends the Hong Kong dollar’s peg to the US dollar.

BOJ

Bank of Japan

Tokyo, Japan — For decades the anchor of near-zero rates — its every move shakes the yen carry trade.

MAS

Monetary Authority of Singapore

Singapore, Singapore — Steers policy through the exchange rate itself, not an interest rate — a rare model.

BI

Bank Indonesia

Jakarta, Indonesia — Guards the rupiah for South-East Asia’s largest economy.

RBI

Reserve Bank of India

Mumbai, India — Manages the rupee for the world’s most populous nation.