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 7.1920
More substantial yuan support from the People's Bank of China again today. The reference rate is nearly 500 points from that earlier estimate.
PBOC injects 1bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%
- 114bn yuan of RRs mature today
- thus a net 111bn yuan drain on the day in OMOs
