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 7.1798
This is a change from the PBoC today, the ‘damping’ of the yuan has flipped. It seems the Bank wants the CNY to appreciate faster.
PBOC injected 382bn yuan via 7-day reverse repos at 1.40%
- 135bn yuan matured today
- net injection 247bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.
