- 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 6.7872
Yesterday's reference rate was 6.7292. The People's Bank of China has taken the axe to the CNY mid-rate today, lower (for CNY) by 600+ points.
The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)
- 0bn yuan mature today
- thus a net 10bn injection
This is the offshore yuan, CNH. Huge weakening.