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 at 7.0836 is the strongest for CNY since the middle of October in 2024.

The prior close was 7.1188.

PBOC injected 141.7bn yuan via 7-day reverse repos at an unchanged rate of 1.40%.

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PBOC drains a net 1.5722 trln yuan for the week via open market operations, the biggest fund withdrawal since Jan 2024.