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 7.0477
In open market operations:
PBoC injects 2bn yuan of 7-day reverse repos at an unchanged rate of 2.0%
- & injects 16bn yuan of 14 data RRs at an unchanged 2.15% (the point of the 14 dayers is to carry over through month-end)
- 2bn yuan of RRs mature today, thus a net 16bn yuan injection