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 6.8820
PBoC injects 2bn yuan of 7-day reverse repos at an unchanged rate of 2.0%
386bn yuan of RRs mature today
thus net drain of 384bn yuan on the day in open market operations
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For the week the net drain is a record high 1601 bn yuan. Extra liquidity was injected over the roll into the new year. That's being siphoned off. The big net injections will begin again ahead of the Lunar New Year Holidays.
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