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.
Previous reference rate was 7.1860
PBOC pushing back a little against yuan weakness. Stiull, weakest mid-rate for CNY in a week.
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PBOC injects 134bn yuan via 7-day RR, sets rate at 1.5%
- 17bn yuan mature today
- net injection is 116bn yuan (small rounding accounts for the difference from 117 here)
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Pan Gongsheng is People’s Bank of China governor