PBOC sets USD/ CNY central rate at 7.1106 (vs. estimate at 7.2528)

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 7.2441

The 7.1106 rate is the weakest (for CNY) since the 23rd of January this year.

PBOC injects 250bn via 7-day RR, sets rate at an unchanged 1.8%

  • 2bn mature today
  • net adding 248bn to banking system, the most since April 30

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