PBOC sets USD/ CNY central rate at 7.1739 (vs. estimate at 7.2727)

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 was 7.2880

PBoC injects 38.2bn yuan via 7-Day Reverse Repos at 1.5%

• 381.5bn mature today
• net drains 343.3bn yuan in Open Market Operations

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