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 7.2450
The USD/CNY fix has been ticking lower (ie a stronger CNY). I guess this will be something the China side will atn acknowledged in the talks this weekend in Switzerland.
PBOC injects 77bn yuan via 7-day RR, sets rate at 1.4%
This article was written by Eamonn Sheridan at www.forexlive.com.