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 closing rate was 7.3090
PBOC sells 164.5 bn yuan of 7 day reverse repo at 1.5%
- 167.4bn mature today
- net drains net 2.9 bn yuan with reverse repos