PBOC sets USD/ CNY mid-point today at 7.0993 (vs. estimate at 7.1011)

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.

Previous reference rate was 7.1060

• PBOC injects 17bn yuan via 7-day RR, sets rate at 1.5%
• 431bn yuan mature today
• net drain is 414bn yuan

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