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 rate at 7.2066 is the weakest (for CNY) since September 11, 2023
The previous close was 7.3390
Earlier today I flagged that the PBOC would once again sit on the USD/CNY rate:
They seem to be content at a slow burn devaluation rather than a big bang at this stage. China is likely holding the threat of a big bang devaluation as a negotiation tactic.
This article was written by Eamonn Sheridan at www.forexlive.com.