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 6.9830
PBOC injects 28.6bn yuan in open market operation reverse repos at an unchanged rate of 1.4%:
- after maturities today the PBoC has net drained 500.2 bn yuan
In other news from China earlier:
- China flags rate and RRR cuts in 2026 as PBoC leans dovish
PBoC signals rate cuts and RRR reductions in 2026
Monetary policy to remain “appropriately loose”
Focus on boosting demand and stabilising growth
December LPR left unchanged for seventh straight month
Yuan stability remains a key policy constraint
- China’s central bank said it will cut reserve requirements and interest rates in 2026 to keep liquidity ample, reaffirming an appropriately loose policy stance aimed at supporting growth, managing risks and keeping the yuan broadly stable.
And:
- China is considering stricter reviews of rare-earth export licences to Japan, with the Commerce Ministry also saying it will prohibit all dual-use exports destined for Japanese military end-users.
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Not related, but the focus for the session here earleir:
- Australian CPI slows to 3.4% in November, core inflation still firmly above target
Data supports RBA hold, not an imminent pivot to rate hikes (IMHO anyway)
Australia’s inflation pulse softened in November, with headline price pressures easing more than expected, though underlying inflation remains uncomfortably firm for policymakers.
Data from the Australian Bureau of Statistics showed the Consumer Price Index rose 3.4% year-on-year in November, down from 3.8% in October and below market expectations of 3.7%. On a monthly basis, headline CPI was flat (0.0%).
Underlying measures also edged lower but remained elevated. The trimmed mean CPI, the Reserve Bank of Australia’s preferred gauge of core inflation, slowed to 3.2% y/y from 3.3%, broadly in line with expectations. On a monthly basis, trimmed mean inflation rose 0.3%, unchanged from October. The weighted median CPI also increased 0.3% m/m and stood at 3.4% y/y.
