The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
- A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 7.1193
That 7.1191 rate today is the weakest for the CNY since September 12.
In open market operations (OMOs):
- PBOC injects 642bn yuan via 7-day RR, sets rate at 1.5%
- 61bn mature today in OMOs
- net injection 581bn
Note that 789bn yuan in MLF mature today.
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