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%.
The mid-rate today is the strongest (for CNY) since April 7. It’s the first setting below 7.2 since that date also.
Previous close was 7.2075
more to come
PBOC injected 180bn yuan via 7-day reverse repos at 1.40%
- 405bn yuan mature today
- net drains 225bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.