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 7.1932
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PBOC injects 122bn via 7-day RR, sets rate at an unchanged 1.8%
- 89bn yuan of RRs mature today
- thus a net 33bn yuan injection on the day in OMOs
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ps. Lunar New Year holidays in China are:
- February 10 to February 17 (eight days in total)
- employers are encouraged to arrange paid leave for employees on New Year’s Eve, February 9
The People's Bank of China will provide added liquidity ahead of February 9 via multiple tools including OMOs to meet increased demand for cash leading into and right over the Lunar New Year holiday period.
