The 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 7.2689
PBOC injects 353bn via 7-day RR, sets rate at an unchanged 1.8%
- 612bn yuan of RRs mature today
- thus a net 259bn yuan drain on the day in Open Market Operations (OMOs)
![pboc mlf 16 October 2023](https://images.forexlive.com/images/pboc%20mlf%2016%20October%202023_id_0435bb47-afe8-42f9-b91f-395df9594388_original.jpg)