What is the renminbi limit

The limit of RMB‘s rise or fall refers to the closing price of the currency pair of the day announced after the market close of each working day, which is used as the midpoint of the next working day.

China limits daily moves to 0.5 per cent of the midpoint, which is the daily limit for gains or losses.

Simply put, the yuan’s daily limit is measured by the central parity rate announced that day.

For example, take the RMB exchange rate on March 3 as an example, the central parity rate of RMB per dollar was 6.8502 yuan, while the spot exchange market opened at 6.8845 yuan. This has already touched the lower limit of the daily fluctuation range of 0.5%, which is commonly known as the “limit fall”.