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%.
7.1586 is the strongest setting for CNY since November 8 last year.
Previous close was 7.1740
PBOC injected 331.5bn yuan via 7-day reverse repos at 1.40%
- 220.5bn yuan mature today
- net injection is 111bn yuan
more to come
This article was written by Eamonn Sheridan at www.forexlive.com.