China is said to have suspended counter-cyclical factor in daily CNY fix

News via Bloomberg

According to people familiar with the matter, the PBOC has changed its guidelines on how to calculate submissions for the daily CNY fixing, effectively removing the counter-cyclical factor from current results.

However, other parts of the mechanism had no adjustments and the PBOC did not give any reasons for making the adjustment.

The PBOC introduced the counter-cyclical factor last year in order to try and reduce the volatility in the daily CNY fixing. This was the latest fixing for the CNY today - although the sources say that the adjustment has already taken effect.