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
pboc People's Bank of China line drawing 2