PBOC sets USD/ CNY reference rate for today at 7.1712 (vs. estimate at 7.2856)

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 7.2775

more to come

PBoC injects CNY 125bln

• via 7-day reverse repos
• rate unchanged at 1.50%
• net drain is 0.8bn yuan given 125.8bn yuan mature today

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