USD/CNY is permitted (by the People's Bank of China) to trade plus or minus 2% from this central rate
- Yuan a lot higher against the USD today
USD/CNH is the 'offshore' and it can trade wherever it likes
No open market operations from the PBOC again today. There were none last Friday, nor on Monday or Tuesday this week.
- Statement from the Bank today again saying liquidity is relatively high, citing high fiscal expenditure at month-end.
50 bn yuan in maturities today, so that's the net drain.