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 7.3066.
Another huge discrepancy in the model estimate and the actual. The PBoC have been doing this for weeks so its not a suprise.
PBOC injects 202bn in open market operations (OMOs) via 14-day RR, sets rate at 1.95%
- 105bn yuan of RRs mature today
- thus a net 97bn yuan injection on the day in OMOs
USD/offshore yuan update:
