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 7.2450.
The People’s Bank of China once again sets the onshore yuan much stronger than was expected. Keeping a lid on USD/CNY.
PBOC injects 2bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%
- 219bn yuan of RRs mature today
- thus a net 217bn yuan drain on the day in OMOs
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This article was written by Eamonn Sheridan at www.forexlive.com. Source