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 7.2378
The People’s Bank of China set the rate up from the long strong of 7.09s as the big figure. The Bank is setting the rate against the backdrop of a surging US dollar. The reference rate today is the weakest (for CNY) since March 1.
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PBOC injects 2bn via 7-day RR, sets rate at an unchanged 1.8%
- 2bn yuan of RRs mature today
- thus net neutral on the day in OMOs