PBOC sets USD/ CNY reference rate for today at 7.1449 (vs. estimate at 7.1690)

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 7.1753

In open market operations:

• PBOC injects 13bn via 7-day RR, sets rate at 1.7%
• 1bn yuan mature today
• net 12bn yuan injection today

Still to come, CPI & PPI from China:

• Economic calendar in Asia 09 August 2024 – Chinese inflation data for July

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