SHANGHAI Feb 20 China's official foreign
exchange trading platform operator fine tuned the yuan midpoint
mechanism on Monday, three sources with direct knowledge of the
matter said, the latest move to help curb speculation on the
China Foreign Exchange Trade System (CFETS) shortened the
reference period of yuan trading against its trade-weighted
basket to 15 hours, between 4:30 p.m (0830 GMT) from the
previous trading day to 7:30 a.m, compared with the previous 24
hours, banking sources said on the condition of anonymity.
They said the latest adjustment was meant to better reflect
changes in the forex market, and help curb intraday speculative
The FX trading platform operator declined to comment on the
matter when contacted by Reuters.
The central bank, which oversees the FX trading platform
operator, has been trying to reform the way it manages the yuan
by making it more market-driven and transparent.
On Dec. 29, the CFETS changed the composition of the CFETS
basket that is used to set the yuan's daily value. Starting from
the beginning of this year, the number of currencies in the
basket was increased to 24 from 13.
On a daily basis, the People's Bank of China sets the yuan's
midpoint to the U.S. dollar based on the previous day's 4:30 p.m
closing price, while also taking into account changes in its
On Monday, the PBOC set the midpoint rate at
6.8743 per dollar prior to the market open, weaker than the
previous fix at 6.8456. The spot yuan was largely
flat against the dollar, changing hands at 6.8692 as of 0613
(Reporting by Shanghai Newsroom; Editing by Shri Navaratnam)