The reference rate for the USD/CNY today was estimated at 7.1788 with the People's Bank of China's counter-cyclical factor" (CCF) included and 7.1954 without.
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 7.2095
Once again the PBOC set the onshore yuan much stronger than was expected.
PBOC injects 2bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%
- 2bn yuan of RRs mature today
- thus a net neutral on the day in OMOs