The 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 7.2747
The reference rate today is the weakest (for the CNY) since November 21 last year.
In open market operations:
- PBOC injects 66bn yuan via 7-day RR, sets rate at 1.7%
270 billion yuan mature today
and thus it's a net drain of 204bn yuan
