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 previous close was 6.9917.
PBOC injects 9.9bn yuan through 7-day reverse repos at an unchanged rate of 1.4%. Net injection today is that 9.9bn.
Earlier:
PBOC is expected to set the USD/CNY reference rate at 6.9896 – Reuters estimate
China FX reserves rise as record trade surplus revives yuan valuation debate
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China’s FX reserves rose USD 11.5 bn in December to USD 3.36 trn
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Record near-USD 1 trn trade surplus has renewed yuan valuation debate
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Headline yuan strength masks deep real-exchange-rate undervaluation
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Weak domestic demand and deflation underpin export competitiveness
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Analysts see limited scope for yuan appreciation without policy risks
PBOC rolls CNY 1.1tn repos to keep liquidity ample as Q1 funding needs rise
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PBOC rolls CNY 1.1tn via three-month outright reverse repos
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Structure uses fixed quantity, multi-price bidding
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Signals liquidity stability, not necessarily new net easing
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Supports early-year bond issuance and credit supply narrative
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Aligns with broader 2026 stance: keep liquidity ample
More from earlier today: We’ve had plenty to going on with from China this first full trading week of the new year. I posted on what I though was a clear signal from the People’s Bank of China yesterday:
A clear signal of what, you ask? I said in that post (as a big bold print in the chart attached, check it out at that link) that ‘reading between the lines the PBoC is asking to stop buying so much yuan’. That turned out to be a gpood take with:
And, the yuan lost ground during the session yesterday:
