The People’s Bank of China sets the reference rate for the US dollar against the Chinese yuan today at 7.1225 (vs. estimate of 7.2587)

Below is an excerpt from Eamonn’s helpful post regarding the midpoint setting, and here are some further explanations on what it is and how it works.

The People’s Bank of China set the internal reference rate for the yuan (CNY) for the next trading session.

• USD/CNY is the local yuan. Trading plus or minus 2% of this daily reference price is permitted.
• CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
• A rate that is much stronger or weaker than expected is usually considered a signal from the People’s Bank of China.

The previous close was 7.2598

This article was written by Arno V Venter at www.forexlive.com.