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.

In setting the reference rate so far from where the market is trading the PBoC is trying to support the weak yuan

The previous close was 7.2383


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


In PBOC news, Governor Pan met with IMF Managing Director Georgieva in Washington and exchanged views on cooperation between China and the IMF.

PBoC Governor Pan Gongsheng
PBoC Governor Pan Gongsheng