PBOC sets USD/ CNY reference rate for today at 7.0770 (vs. estimate at 7.0971)

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 7.0978

7.0770 is the strongest fixing rate for CNY since 29 May 2023

PBOC injects 137bn via 7-day RR, sets rate at an unchanged 1.8%

  • 1006bn yuan of RRs mature today
  • thus a net 869 bn yuan drain on the day in OMOs

This article was written by Eamonn Sheridan at www.forexlive.com. Source