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 7.1986
PBOC injects 10bn via 7-day RR, sets rate at an unchanged 1.8%
- 384bn yuan of RRs mature today
- thus a net 374bn yuan drain on the day in OMOs
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Earlier from China’s ‘Work Report’:
- GDP growth target set at around 5%
- Budget deficit at 3% of GDP
- Plans 1 trln yuan in new special government debt
- Aims to add 12 million urban jobs
- Aims for unemployment rate at around 5.5%
More:
- China will target around 5% 2024 GDP growth (Work Report)
- China warns of “worst case” scenario for economy
- China says will keep the yuan exchange rate basically stable
This article was written by Eamonn Sheridan at www.forexlive.com. Source