People’s Bank of China sets yuan reference rate at 7.1032 (vs. estimate at 7.1970)


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.

PBOC injects 32bn via 7-day RR, sets rate at an unchanged 1.8%.

  • 100bn yuan of RRs mature today
  • thus a net 68bn yuan drain on the day in OMOs

This article was written by Eamonn Sheridan at Source