PBOC sets USD/ CNY reference rate for today at 7.0531 (vs. estimate at 7.0518)

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 7.0480

The reference rate today at 7.0531 is the strongest, for CNY, since May 26,2023

In open market operations (OMOs):

• PBOC injects 160bn via 7-day RR, sets rate at 1.7%
• injects 74bn yuan in 14 days RRs, cuts rate from 1.95% to 1.85%

• 139 bn yuan reverse repo expire today
• net 96bn liquidity injected into the market

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