PBOC sets USD/ CNY reference rate for today at 7.1307 (vs. estimate at 7.1311)

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 7.1220

In open market operations (OMOs):

• PBOC injects 241bn yuan via 7-day RR, sets rate at 1.5%
• 210bn yuan mature today
• net injection is 31bn yuan

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Earlier:

• China vice fin min says further stimulus details after National People’s Congress session
• ICYMI, People’s Bank of China open market outright reverse repo operations facility
• China’s industrial profits collapse in September: -27.1% y/y (vs -17.8% y/y prior)

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