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 7.1750
PBOC injected 69bn yuan via 7-day reverse repos at 1.40%
- 131bn yuan mature today
- net drain 62bn yuan
Earlier:
- It looks like the PBOC is sweating over the sharp appreciation of the yuan against the USD
- China eyes plan to ramp up offshore bond purchases via Southbound Connect
This article was written by Eamonn Sheridan at www.forexlive.com.