PBOC sets USD/ CNY reference rate for today at 7.0074 (vs. estimate at 7.0098)

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 7.0111

The rate at 7.0074 is the strongest, for CNY, since May 18 2023.

In open market operations (OMOs):

• PBOC injects 212bn via 7-day RR, sets rate at 1.5% (this was lowered on Friday)

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Weekend news from China – lower rates and easing housing restrictions:

• More stimulus from China over the weekend – banks instructed to cut mortgage rates

This is the last reference rate for the week, China is on holiday after today and back on Tuesday 8 October.

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