PBOC sets USD/ CNY reference rate for today at 7.1907 (vs. estimate at 7.2312)

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 7.2288

In open market operations (OMOs) the

PBOC injects 39bn yuan via 7-day RR, sets rate at 1.5%

• 134bn yuan mature today

• net drain is 95bn yuan

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