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.
  • Reuters estimate was 6.4617. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
  • The previous close, way back before the long holiday, was 6.4480.

On the trade-weighted basket the yuan has hit its highest since February 2016, 99.86

PBOC injects 10bn yuan via 7-day reverse repos

  • 340bn RRs mature today

  • thus net 330bn yuan drain on the day - subtracting liquidity after the holiday

China is back after the long holiday!