I'm already seeing bank research calling USD/CNY above 7 Some of it well above, 7.1, 7.2 ….. yikes.

If that starts to be believed watch out for larger capital outflows (don't mention crisis to the PBOC, K?)

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Anyway, for today

Another huge devaluation from the People's Bank of China

  • CNY to its lowest against the USD since mid-July 2017
  • biggest one day cut to the onshore yuan at the mid rate setting since June of 2016

This shoud be a risk negative

In Open Market operations, PBOC to skip today

No RRs mature, thus neutral from the PBOC today

For the week the bank has added 540bn yuan via OMOs