PBOC sets USD/ CNY reference rate for today at 7.1729 (vs. estimate at 7.3009)

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:

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