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 6.9094

The reference rate is a good way from that estimate, the PBOC trying to slow the devaluation of the yuan. This is five consecutive days now the Bank has held the CNY stronger than the estimate.

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The PBOC injects 2 yuan via 7-day reverse repos (rate remains at 2.0%)

  • 2bn yuan mature today
  • thus a net neutral in OMOs today

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Earlier, as expected the Bank is holding back the devaluation of the yuan:

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