• USD/CNY is the onshore yuan. Its 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.

  • A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

PBoC injects 20bn yuan via 7-day reverse repos in open market operations

  • 150bn in RRs mature today
  • thus a drain of net 130bn yuan (a withdrawal of cash liquidity is expected after the holiday)