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 6.7260
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Today's CNY mid rate is the strongest for the currency since The middle of July last year.
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People's Bank of China
- injects 55bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0%
- injects 77bn yuan in 14-day RRS, rate unchanged at 2.15%
- 2bn yuan of RRs mature today
This a net injection of 130bn yuan on the day in OMOs
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For the week a net injections of 213bn yuan. We can expect further large injections such as this from the PBOC in the days ahead to maintain stable liquidity before the Lunar New Year holidays.
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Yesterday's China inflation data ICYMI:
