The 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 7.2320
PBOC injects 2bn via 7-day RR, sets rate at an unchanged 1.8%
- 2bn yuan of RRs mature today
- thus net neutral on the day in OMOs
ps.
On Sunday April 7 the PBOC added 2 billion yuan of the 7-day RRP
- 400 billion yuan matured on the day
- thus 398 billion yuan was drained from the market on a net basis
