
The People’s Bank of China (PBOC), the country’s central bank, sets the daily midpoint for the yuan (also known as renminbi or RMB). It operates a managed floating exchange rate system, which allows the yuan’s value to fluctuate within a specified range, or “band,” around this central reference rate. Currently, this band is set at plus or minus 2%.
The yuan’s previous closing midpoint was 7.0800.
In terms of monetary operations, the PBOC injected 301.3 billion yuan into the market through 7-day reverse repos, maintaining the interest rate at 1.40%. After accounting for maturities today, the net liquidity drain from the market stands at 73.7 billion yuan.
For forex traders, these factors are crucial to monitor as they directly impact yuan liquidity and exchange rate stability, influencing trading decisions and risk management.
Original Source: Eamonn Sheridan of investinglive.com







