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 7.2040
Today’s 7.1956 rate is the strongest for CNY since April 3.
PBOC injected 92bn yuan via 7-day reverse repos at 1.40%
- 195.5bn yuan mature today
- net drains 103.5bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.
