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 gap between the estimate and the actual is quite a large one today.
- The previous close was 6.3208
The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)
300bn yuan mature today
thus a net 290bn drain
