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 7.1925
PBOC injects 49bn via 7-day RR, sets rate at an unchanged 1.8%
- 396bn yuan of RRs mature today
- thus a net 347bn yuan drain on the day in OMOs
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Earlier:
- China’s hefty rate cut is expected to provide an only marginal net stimulus to the economy
- China fund manager makes bullish comments on Chinese sharemarkets
This article was written by Eamonn Sheridan at www.forexlive.com. Source