People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

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.

The previous close was 7.0048

Today's set is the weakest for the CNY since August 12 of 2020

In open market operations:

PBoC sells 2bn yuan of 7-day reverse repos at an unchanged rate of 2.0%

  • & sells 24bn yuan of 14 data RRs at an unchanged 2.15% (the point of the 14 dayers is to carry over through month-end)
  • 2bn yuan of RRs mature today, thus a net 24bn yuan injection