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 previous close for USD/CNY was 7.2733
PBoC injects CNY 538.9bln
- via 7-day reverse repos
- rate unchanged at 1.50%
- net drain is 19.1bn yuan given 558bn yuan mature today
This article was written by Eamonn Sheridan at www.forexlive.com.
