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 7.1197
In open market operations (OMOs):
- PBOC injects 133bn yuan via 7-day RR, sets rate at 1.5%
- 150bn mature today in OMOs
- net drain 17bn
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Still ahead from China, due at 10 am Beijing time (0200 GMT, 2200 US Eastern time):
It'll include:
- setting up a whitelist for real estate companies
- special bonds for land reserves,
- purchase of existing housing for affordable housing units
- other incremental policies to come
