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.
- The previous close was 6.4722
- Reuters surveyed estimate was 6.4732 .... (A rate that's significantly stronger or weaker than expected is typically considered a signal from the PBOC).
Yesterday the PBOC increased its short-term cash injection, that done through daily open market operations, for the first time since March. This was to ease market concerns about tightening liquidity conditions ahead of quarter-end. The impact of the injection (net 20bn yuan after months of neutral each day) was to help drop overnight borrowing costs the most in three months.
PBOC injects net 20 billion yuan liquidity via 7-day reverse repo
- 30bn injected against 10 bn maturing today.
