People's Bank of China
a.k.a. PBOC
China's central bank, which sets monetary policy and keeps a firm grip on the yuan's exchange rate.
The People's Bank of China (PBOC) is China's central bank. Unlike the Fed or ECB, it answers to the government's State Council rather than being fully independent. It sets lending rates, controls how much cash banks must hold in reserve, and manages the yuan.
Every morning it publishes a "fixing", a reference rate for the onshore yuan against the dollar, and the yuan may only trade within a band around it. Traders scrutinise that fixing for hints: a fixing stronger than expected signals Beijing wants a steadier yuan.
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