The 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 7.2469
The reference rate at 7.1724 today is its strongest (for the CNY) since September 27.
PBOC injects 377bn via 7-day RR, sets rate at an unchanged 1.8%
- 202bn yuan of RRs mature today
- thus a net 175bn yuan injection on the day in Open Market Operations (OMOs)
