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 7.1210

PBoC inject CNY 128bn via 7-day reverse repos (rate unchanged at 2.00

  • injects CNY 58bn via 14-day reverse repos (rate unchanged at 2.15%)
  • 2bn yuan of RRs mature today
  • thus a net CNY 184bn injection

For the week the net injection was 868bn yuan. Its the Golden Week holidays next week, and month and quarter end, hence the large provision of funds into the system.

-- gbp