News

On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.0973 compared to Friday’s fix of 7.0949 and 7.1318 Reuters estimate.

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 7.1277

PBoC injects CNY 189bln via 7-day reverse repos, rate at unchanged 1.40%

• the net drain today is 64.8bn yuan

This article was written by Eamonn Sheridan at investinglive.com.

The GBP/USD pair kicks off the new week on a subdued note following Friday’s good two-way price swings and holds steady above the 1.3400 round figure during the Asian session.

The People’s Bank of China (PBOC), China’s central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Monday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. 

China PBoC Interest Rate Decision meets expectations (3%)

People’s Bank of China sets its 1 and 5 year Loan Prime Rate (LPR) rates unchanged.

The PBOC uses the reverse reop rate as its main policy rate now. Currently 1.4%.

Most lending in China is tied to the one-year LPR, while the five-year rate guides mortgage pricing. Both rates were last trimmed by 10 basis points in May.

This article was written by Eamonn Sheridan at investinglive.com.

China September rare earth magnet exports at 5,774 metric tons, down from 6,146 tons in August-customs data

• Germany, South Korea, Vietnam, the United States and Mexico are China’s top five export destinations for rare earth magnet by volume in September-customs data
• China’s September rare earth magnet exports to the United States fell 28.7% from August-customs data

This article was written by Eamonn Sheridan at investinglive.com.

US President Donald Trump said over the weekend that he wants China to buy soybeans at least in the amount they were buying before. Trump added that he believes China will make a deal on soybeans.

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.

This article was written by Eamonn Sheridan at investinglive.com.

S&P Global Ratings downgraded France to A+ from AA-, citing the country’s budget uncertainty as “elevated” despite the submission of a 2025 draft budget, Bloomberg reported on Saturday.