The PBOC fixed USD/CNY today at 6.3169 (edit) and the market closed on Friday near 6.3700 and is currently trading near 6.3670. If the price gets to 1% away from the mid-point, ie 6.3740, then the PBOC will sell USD/CNY in order to maintain the band.
China has plenty of USD to sell but if they are forced into selling USD/CNY in the market and wish to maintain their current FX reserve ratio, then they would have to sell EUR/USD, buy USD/JPY etc. This of course would have an impact on the just-started Yuan/Yen link which is to have a 3% trading band.
