PBOC sets USD/ CNY reference rate for today at 7.1876 (vs. estimate at 7.3031)

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 PBoC conintues to support the yuan.

In open market operations, the PBOC injected 64 billion yuan of 7-day Reverse Repo at an unchanged rate of 1.5%

• 355 bn matured
• thus net draining 291 billion yuan

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