People's Bank of China (PBOC) sets the USD/CNY mid-point reference rate at 6.4085
- The bank sets the mid-point each day (Monday to Friday) and then allows the rate to fluctuate +/-2% either side of this central point.
- USD/CNY moves outside the band are not permitted; the PBOC will intervene at the extremes to stop the rate moving any more than +/-2% on a day
- The USD/CNY is not a free floating exchange rate
Yesterday the rate was set at a (then) 4-year central point low (for the yuan) of 6.4043. Yuan set weaker again today. Devaluations (albeit teeny tiny) continue
- Yesterday's close was 6.4105
A few moments before ...
- PBOC injects 150 bln yuan through 7 day reverse repos
- Injects a net 60 bln yuan via open market operations this week, versus a net 150 bln injection last week
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Reminder ...
- the opening of the Chinese stock markets is at 0130GMT. I'll have the guide to where they will open a few minutes before then
