PBOC lowers USD/CNY reference rate to 7.1688

The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1688 for Monday, down from 7.1738 on Friday. This rate is also lower than the Reuters estimate of 7.2199. The PBOC uses various monetary policy tools, including the Loan Prime Rate, to influence interest rates and exchange rates. The central bank aims to maintain price stability and promote economic growth. China has 19 private banks, with WeBank and MYbank being the largest. These banks operate within a state-dominated financial system, which was opened to fully capitalized private lenders in 2014.