The People's Bank of China sets the yuan against the USD
- This is the 'reference rate'
- USD/CNY can trade in a band plus or minus 2% of this rate for the day
- USD/CNH can do whatever the **** it likes though
- CNH is the 'offshore' yuan (CNY the 'onshore')
USD/CNY basically unchanged at the mid rate today
The PBOC has skipped OMOs again today (as they did Monday)
- Say liquidity at a high level
(no further injections into the money market might well be read as a PBOC tightening)