• 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