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.