Home / Business / PBOC sets RMB's midpoint to $ 7.0312 per dollar on August 14

PBOC sets RMB's midpoint to $ 7.0312 per dollar on August 14

The US Dollar and China Yuan arranged a photograph on September 7, 2017.

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China's central bank set the official midpoint of the yuan at $ 7.0312 per Wednesday – stronger than Tuesday's fix and stronger than analysts had predicted.

It was still the fifth consecutive session where the People's Bank of China (PBOC) fixed the midpoint at a level that was weaker than the psychologically important 7-yuan-per-brand.

Analysts predicted the midpoint to be set at 7.0502 per dollar, according to Reuters estimates. The yuan on land was last traded at 7.0558 during Tuesday's session and on Wednesday morning was at 1

0.00 HK / SIN at 7.0236. The offshore yuan was trading at 7.0397 against the dollar, slightly weaker than Tuesday's close but stronger than at the end of last week, when it hovered around the 7.09 level.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis in 2008, which prompted the US Treasury to designate China as a currency manipulator.

A weaker currency makes a country's exports more attractive in international markets and US President Donald Trump has complained that a cheaper yuan gives China a trade advantage.

The PBOC allows the currency's spot exchange rate trading at a range of 2% above or below today's official midpoint fix and this is called the country's yuan. The less restrictive exchange rate used outside China is called the offshore yuan.

Investors usually look at the difference between exchange rates on land and offshore to determine whether the Chinese central bank is manipulating the yuan.

– CNBC's Saheli Roy Choudhury contributed to this report.

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