PBOC sets USD/ CNY mid-point today at 6.7246 (vs. estimate at 6.7096)

• 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 6.7190

6.7246 is the weakest (for CNY) since the middle of June. The reference rate today is also a long way from the estimate. Which is a signal from the PBOC that are not troubled by a weaker CNY from here. Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is not an issue in China (according to official data releases so that wouldn't be holding back the PBOC.

The PBOC injects 3 yuan via 7 day reverse repos (rate remains at 2.1%)

• 100bn yuan mature today
• thus a net 97bn drain in OMOs today

USD/CNY daily candles. Tracking largely sideways since its big devaluation. Note - This chart was prepared prior to today's mid-rate setting: