PBOC sets USD/ CNY reference rate for today at 7.1692 (vs. estimate at 7.2386)

Strongest for the yuan since February 6.

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 7.2345

PBoC injects 104.5bn yuan via 7-Day Reverse Repos at 1.5%

• 215bn mature today
• Net drain is 110.5bn yuan

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