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 6.7738
This is the final mid-rate setting before the long Lunar New Year holidays. China is off all of next week.
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People's Bank of China:
injects 62bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0%
injects 319bn yuan in 14-day RRS, rate unchanged at 2.15%
55bn yuan of RRs mature today
Thus a net 326 bn yuan injection for the day. For the week the total injection via OMOs was 2450bn yuan.
The large injections come ahead of the extended Lunar New Year holiday that begins on January 21. Demand for cash surges over this holiday break.
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