PBOC sets USD/ CNY reference rate for today at 7.1786 (vs. estimate at 7.2849)

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 7.2768

PBOC injects 105bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%

  • PBOC inject 34bn via 14 day RR, sets rate at 1.95% vs. 2.15% previously
  • 363bn yuan of RRs mature today
  • thus a net 224bn yuan drain on the day in OMOs

This: PBOC sets 14 day RR rate at 1.95% vs. 2.15% previously

  • is another rate cut from the Bank
  • we haven’t had a 14 dayer in many months

And, coming up still from China:

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