The People's Bank of China setting the middle rate for onshore yuan trading today
A surging yuan against the USD again today at the mid rate fixing. This puts the onshore yuan at its highest against the big dollar since September 11 of 2017.
In Open Market Operations ... PBOC skips these again today.
- After gauging 7, 14, 28 and 63-day RR demand the Bank syas liquidity is at a relatively high level.
- 7th consecutive trading day of no OMOs.
- After accounting for maturing reverse repos it's a net drain of 290bn yuan
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On Friday CFETS set the yuan at 94.85, up 0.19 on the week.
And, as a BTW, I posted this last Friday, but ICYMI:
The PBOC announced it would set up a temporary liquidity facility for Lunar New Year (there is usually a surge in demand for cash ahead of Lunar New YearThis will provide commercial banks with more cash available ahead of the approaching Lunar New Year
- Allows banks to temporarily keep fewer reserves with the PBOC
- Some banks will be allowed to lower their reserve requirement ratios by up to 2% for 30 days
(The first day of Lunar New Year in 2018 is February 16)
