PBOC sets USD/ CNY mid-point today at 7.0968 (vs. estimate at .71967)

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 close was 7.1986

PBOC injects 3bn via 7-day RR, sets rate at an unchanged 1.8%

• 3bn yuan of RRs mature today
• thus net neutral on the day in OMOs

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As for the changes to the People’s Bank of China’s monetary policy committee:

Now includes

• China securities
  regulator head Wu Qing,
• Vice Central Bank
  Governor Xuan Changneng

Also has two new
academic members,

• Huang Yiping from
  Peking University
• and Huang Haizhou
  from Tsinghua University

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