People's Bank of China USD/CNY reference rate is due around 0115 GMT.

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%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day's trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan's value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency's value.

Yesterday the People's Bank of China propped up the yuan at this setting:

• PBoC promised stronger damping to support CNY, and that's what are seeing

I suspect we'll see similar support for the yuan again today.

This article was written by Eamonn Sheridan at www.forexlive.com.

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

Previous close was 7.2330

In open market operations (OMOs):

PBOC injects 328bn yuan via 7-day RR, sets rate at 1.5%

• 19bn yuan mature today
• net injection is 309bn yuan

This article was written by Eamonn Sheridan at www.forexlive.com.

Justin had the news from the People's Bank of China here:

• PBOC governor will maintain yuan exchange rate at a reasonable, balanced level

PBOC governor Pan Gongsheng emphasized the Bank will not let the yuan plummet without a fight:

• Will step up countercyclical adjustment
• Should resolutely guard against the risk of exchange rate overshoot

With the surging USD after Trump's win the yuan is just one of many weaker currencies:

This article was written by Eamonn Sheridan at www.forexlive.com.

People's Bank of China USD/CNY reference rate is due around 0115 GMT.

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%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day's trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan's value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency's value.

Earlier:

• ICYMI - PBOC Governor warned on yuan slide, will 'guard against risk of overshoot'

This article was written by Eamonn Sheridan at www.forexlive.com.

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

Previous close was 7.2150

The rate today at 7.1927 is weakest since September 12 of 2023.

PBOC injects 125bn yuan via 7-day RR, sets rate at 1.5%

• 18bn yuan mature today
• net injection is 107bn yuan

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This article was written by Eamonn Sheridan at www.forexlive.com.

People's Bank of China USD/CNY reference rate is due around 0115 GMT.

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%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day's trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan's value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency's value.

Earlier re China:

• Green shoots in China? Excavator sales grew 15% in October
• It's not a pretty picture in China

This article was written by Eamonn Sheridan at www.forexlive.com.

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

Previous reference rate was 7.2355.

The setting at 7.1991, about 300-odd points lower than the modelled estimate is indicative of the PBoC pushing back against yuan weakness. AUD/USD has popped a little on the setting of a stronger than expected yuan.

PBOC injects 233bn yuan via 7-day RR, sets rate at 1.5%

• 17bn yuan mature today
• net injection is 216bn yuan

/*/*

This article was written by Eamonn Sheridan at www.forexlive.com.

Justin had the news from the People's Bank of China here on Monday:

• PBOC governor will maintain yuan exchange rate at a reasonable, balanced level

The PBOC governor Pan Gongsheng emphasized that the Bank will not let the yuan plummet without a fight:

• Will step up countercyclical adjustment
• Should resolutely guard against the risk of exchange rate overshoot

Today is an example of the Bank pushing back on yuan weakness, with the reference rate set 300+ points stronger for the CNY than was expected (in the Reuters model).

Offshore yuan has jumped (lower USD/CNH as shown in the chart below):

This article was written by Eamonn Sheridan at www.forexlive.com.