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 7.2580.
Another strong setting for the CNY, like yesterday. It was shrugged off by the market on Monday.
In other PBOC news the Bank plans to issue CNY 20bn of 3-month bills and CNY 15bn of 1-year bonds in Hong Kong on August 22.
The PBOC has cut the 7 day reverse repo rate. To 1.8% from prior 1.9%.
- inject 204bn yuan
- net injection 18bn yuan
We are awaiting the MLF setting too: