Earlier, a People's Bank of China rate cut:
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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 7.0318
In open market operations (OMOs):
- PBOC injects 196.5bn via 14-day RR, rate at 1.85%
- 568 bn yuan reverse repo loans expire today
- net 372 bn liquidity drained from market in OMOs (note the MLF above)
