PBOC sets USD/ CNY reference rate for today at 7.1883 (vs. estimate at 7.2923)

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 7.2790

The PBOC is still sitting on the fixing rate to support the yuan. Another 10+ big figure difference between the modelled estimate and the actual.

Yuan has stabilised with the PBOC actions:

PBOC injects 221bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%

  • 98bn yuan of RRs mature today
  • thus a net 123bn yuan injection on the day in OMOs

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