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 rate today is the weakest (for the yuan) since December 3 last year. But its not even close to where the market closed trade for the day on Friday. That previous close was 7.2681.
Earlier re China:
- Goldman Sachs expects fiscal easing from China to offset added growth drag from tariffs
- Chinese State Media says People’s Bank of China may have room for a rate cut (RRR)
This article was written by Eamonn Sheridan at www.forexlive.com.
