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 7.2900
Another 10 big figure difference between the modelled estimate and the PBoC setting. The Bank has done this over and again in past weeks to stem the drop in the yuan. Successfully so far.
PBOC injects 385bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%
- 111bn yuan of RRs mature today
- thus a net 274bn yuan injection on the day in OMOs