People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is 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.
- The previous close was 6.4711
- Reuters estimate was 6.4654. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
PBOC injects 50bn yuan via 7-day reverse repos
10bn RRs mature today
thus net 40bn injection
The PBOC have been telling us they'll be boosting liquidity and last week came good somewhat, for the week overall the Bank added in a net 120bn yuan through open market operations.