PBOC sets USD/ CNY central rate at 7.1027 (vs. estimate at 7.1961)

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

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%


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