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 7.3059
PBOC injects 95bn via 7-day RR, sets rate at an unchanged 1.8%
- 0 yuan of RRs mature today
- thus a net 95bn yuan injection on the day in OMOs
Contrasting with the big drains all this week after the holiday. A total of 1,176 billion yuan was drained from the market this week. This was the largest amount for 9 months.
