PBOC sets USD/ CNY central rate at 7.1307 (vs. estimate at 7.1303)

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 7.1297

The People’s Bank of China has pulled right back on supporting the yuan. The currency is being helped by market moves to lower the USD.

In open market operations:

• PBOC injects 258bn via 7-day RR, sets rate at 1.7%
• 369bn yuan mature today
• net 111bn yuan drain today

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