PBOC sets USD/ CNY mid-point today at 6.3566 (vs. estimate at 6.3478)

• 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 for USD/CNY was 6.3635

The PBOC inject 150 yuan via 7 day reverse repos (rate remains at 2.1%)

• 20bn yuan mature today

• thus a net 130bn yuan injection

The PBOC promised ample liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term on approach to the need of Q1 and are providing it. This is the 4th day in a row of >100bn yuan net injections via OMOs