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 7.2315
In open market operations (OMOs):
- PBOC injects 288bn yuan via 7-day RR, sets rate at 1.5%
- 126bn yuan mature today
- net injection is 162bn yuan
Earlier re the People’s Bank of China:
This article was written by Eamonn Sheridan at www.forexlive.com. Source