The People’s Bank of China announced on the 16th that it lowered the yuan’s standard against the dollar, reflecting the economic recovery trend, the difference in interest rates at home and abroad, and the covid-19 trend.
The People’s Bank of China lowered the yuan’s benchmark by 0.0065 yuan and 0.10 percent from 1 dollar=6.4640 yuan the previous day.
The yuan’s benchmark was 100 yen = 5.8919 yuan, down 0.0150 yuan and 0.25 percent from the previous day (5.8769 yuan). It has been down for two consecutive trading days.
In the Shanghai foreign exchange market, the yuan was traded at 1 dollar=6.4662–6.4668 yuan and 100 yen=5.8796–5.8800 yuan, respectively, at 9:42 a.m.
The yuan closed at 1 dollar = 6.4615 yuan and 100 yen = 5.8842 yuan respectively on the night of the 15th.
The People’s Bank of China announced yuan benchmarks for other major currencies at €1=7.6412 yuan, Hong Kong dollar=0.83298 yuan, British pound=8.9469 yuan, Swiss franc=7.0500 yuan, Australian dollar=4.8040 yuan, Singapore dollar=4.7759 yuan and 1 yuan=176.59.
Meanwhile, the People’s Bank of China manipulated the open market through reverse repo transactions on the 16th and supplied liquidity of 10 billion yuan to the market on the 7th.
However, there is no net inflow of liquidity, given that the reverse repo, which expired on this day, is 10 billion yuan.
The previous day, the People’s Bank of China released 100 billion yuan with a medium-term liquidity support counter (MLF 2.95%), but actually absorbed 300 billion yuan in liquidity as MLF reached 400 billion yuan.
