PBOC sets USD/ CNY central rate at 6.3890 (vs. estimate at 6.3875)
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 6.3875. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
- The previous close was 6.3856
- Yesterday's mid-rate was 6.3924
PBOC injects 200bn yuan via 7-day reverse repos ... hefty addition of funds, 200bn injection for the second day running.
10bn RRs mature today
thus net 190bn injection in open market operations for the day