- 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 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:
