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
- more to come
People's Bank of China
- injects 65bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0%
- injects 52bn yuan in 14-day RRS, rate unchanged at 2.15%
2bn yuan of RRs mature today
- This a net injection of 115bn yuan on the day in OMOs
We can expect further large injections such as this from the P{BOC in the days ahead to maintain stable liquidity before the Lunar New Year holidays.
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Inflation data coming soon from China: