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 7.1818
The rate today, 7.1746, is the strongest for the onshore yuan (lowest for USD/CNY) since March 19.
PBOC injected 197.3bn yuan via 7-day reverse repos at 1.40%
198.6bn yuan mature todaynet drain 1.3bn yuan
This article was written by Eamonn Sheridan at www.forexlive.com.