Its been busy from China already, with rate cuts flowing in:
- More rate cuts coming from Chinese banks – as expected
- PBOC cuts Loan Prime Rates (LPRs) by 10bp for both 1- and 5-year loans
The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.
Previous close was 7.2155
PBOC injected 357bn yuan via 7-day reverse repos at 1.40%
- 180bn yuan matured today
- net injection 177bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.