People's Bank of China takes a big bite out of the CNY again today

The bank using the CNY in the trade war? On the face of I'd say yes …. they are really slashing its price. Each day the Bank set a mid rate - and each day they are devaluing it.

Today's mid point is the weakest for the CNY since Dec 25 last year.

The big cut today is a bit of a surprise, the size not the direction.

Open Market operations

  • PBOC inject 60 bn yuan through 7-day reverse repos

net 150bn yuan drain (i.e. 210bn yuan maturing RRs today)