PBOC sets USD/ CNY reference rate for today at 7.2208 (vs. estimate at 7.2540)

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 7.2390

The People’s Bank of China with a stronger than expected rate for the yuan. Signalling more forcefully it’d like to slow the decline of the currency. I suspect they are not trying to put a floor under it, just to slow it still though. Offering up a buy the dip scenario for USD/CNH.

PBOC injects 193bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%

  • 0bn yuan of RRs mature today
  • thus a net 193bn yuan injection on the day in OMOs


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