PBOC plans to add a “counter-cyclical adjustment factor" in Yuan fixing formula

Bloomberg cites people familiar with the matter, providing insights on the earlier headline - China PBOC said to plan change in Yuan fixing formula. 

Key Details:

Under the new formula, institutions that provide quotes for the fixing will take into account:

The previous day's official closing price at 4:30 p.m. local time,

The changes in baskets of currencies,

And the new counter-cyclical adjustment factor

The new formula would partly filter out the impact of excessive volatility in the spot market by reducing the closing price's role in the next day's fixing