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 7.0788
Much weaker than expected for the onshore yuan at the mid-rate setting today.
PBOC injects 13bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 2%
- 2bn yuan of RRs mature today
- thus a net 11bn yuan injection on the day
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