PBOC sets USD/ CNY reference rate for today at 7.1717 (vs. estimate at 7.2495)

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 7.2530

PBoC injects CNY 292.5bln yuan in open market operations (OMOs)

• via 7-day reverse repos
• rate unchanged at 1.50%
• net injection is 102bn yuan given 190.5bn yuan mature today

Earlier re China:

• China to deepen rural reforms further, move to accelerate rural revitalization

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