PBOC sets USD/ CNY central rate at 7.1192 (vs. estimate at 7.2653)

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 7.2572

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7.1192 is the weakest (for the CNY) since November last year. The People’s Bank of China is loosening its grip on the yuan:

• The PBOC USD/CNY fixing is coming up soon – looks like the Bank is lightening up

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PBOC injects 20bn via 7-day RR, sets rate at an unchanged 1.8%

• 2 bn yuan mature today
• a net 18 bn yuan injection Open Market Operations (OMOs)

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