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 for USD/CNY was 6.3635
The PBOC inject 150 yuan via 7 day reverse repos (rate remains at 2.1%)
20bn yuan mature today
thus a net 130bn yuan injection
The PBOC promised ample liquidity on approach to the need of Q1 and are providing it. This is the 4th day in a row of >100bn yuan net injections via OMOs