PBOC sets USD/ CNY reference rate for today at 7.1696 (vs. estimate at 7.2433)

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 7.2391

PBoC injects CNY 182.5bln yuan in open market operations (OMOs)

• via 7-day reverse repos
• rate unchanged at 1.50%
• net injection is 84bn yuan given 98.5bn yuan mature today

This article was written by Eamonn Sheridan at www.forexlive.com.