Another huge discrepancy between the modelled expectation and the PBOC decision. Yesterday was a 10 big figure deviation, today also. Even more so today, the difference between the rate set and the estimate is the largest on record. The Bank is signalling it'd like to slow the pace of the yuan's fall. State banks have been intervening to sell USD/CNY also:

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 7.2888

more to come

PBOC injects 98bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%

  • 2bn yuan of RRs mature today
  • thus a net 96bn yuan injection on the day in OMOs


The yuan is barely off its lows:

usdcnh pboc intervention 18 August 2023