PBOC sets USD/CNY mid-point today at 6.8823 (vs. yesterday at 6.8792)

Author: Eamonn Sheridan | Category: Central Banks

Yesterday the People's Bank of China weakened the yuan against the USD with its biggest drop for 3 weeks. Edges the yuan a little weaker again today. 

PBOC inject 100bn yuan through reverse repos in open market operations (OMOs) today:
  • To inject 60 bn yuan through 7-day reverse repos
  • To inject 20 bn yuan through 14-day reverse repos
  • To inject 20 bn yuan through 28-day reverse repos   
For the week, the PBOC injects net 170bn yuan (70bn injection the previous week)
  • Chinese economy is "undergoing a very profound broad transformation," said Vitor Gaspar, director of the IMF Fiscal Affairs Department
  • The country is rebalancing the growth model from manufacturing to services, from investment to consumption, and from exports to domestic demand
  • Going forward, "what is key is to guarantee that China continues on a sound and sustainable growth path," Gaspar told Xinhua in an interview on the sidelines of the Spring Meetings of the IMF and the World Bank, adding that fiscal policy could help facilitate China's economic transition
For interest only, not of immediate FX importance