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%.
In Open market operations (OMOs) the PBOC inject 612bn yuan at an unchanged rate of 1.4%
- after accounting for maturities today it’s a 1451.3bn yuan drain
This article was written by Eamonn Sheridan at investinglive.com.
