PBOC sets USD/ CNY reference rate for today at 7.0953 (vs. estimate at 7.1306)

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 7.1410

PBOC injects 40bn via 7-day RR, sets rate at an unchanged 1.8%

  • injects 291bn via 14-day RR, sets rate at an unchanged 1.95% (the 14 dayers are to provide liquidity over the holiday period heading into new year)
  • 50bn yuan of RRs mature today
  • thus a net 281bn yuan injection on the day in Open Market Operations (OMOs)

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