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.
China was off on holidays, with markets closed, Wednesday, Thursday and Friday last week.
PBOC injects 2bn via 7-day RR, sets rate at an unchanged 1.8%
- 10bn yuan of RRs mature today
- thus net 8bn drain on the day in OMOs
![pboc](https://images.forexlive.com/images/pboc%20People%27s%20Bank%20of%20China_id_0662cb0a-ba18-47da-b08e-25c60b60e43b_original.jpg)