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%.

More strength again for the yuan, against a very weak US dollar. The mid-rate at 1.1534 today is the strongest for CNY since November 8 last year.

Previous close was 7.1636

PBOC injected 131bn yuan via 7-day reverse repos at 1.40%

• 406.5bn yuan mature today
• net drain is 275.5bn yuan

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