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 6.3862. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
- The previous close was 6.3830
- Yesterday's mid-rate was 6.3890
PBOC injects 200bn yuan via 7-day reverse repos ... hefty addition of funds, 200bn injection for the third day running.
100bn RRs mature today
thus net 100bn injection in open market operations for the day
On a trade-weighted basket measurement, the onshore yuan has risen to its highest since 2016 today.