The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is 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.
- Reuters estimate for the reference rate was 6.3632. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
- The previous close was 6.3850
- Friday's mid-rate was 6.4032
PBOC injects 200bn yuan via 7-day reverse repos ... hefty addition of funds
10bn RRs mature today
thus net 190bn injection in open market operations for the day
PBOC cites tax and government bond issuance payments as reasons for the large yuan injection on the day.