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 7.2570
PBOC injected 64.9bln yuan via 7-day reverse repos at 1.50%
- 377.9bn yuan mature today
- net drains 313bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.