People's Bank of China set the onshore yuan mid-rate for the trading session ahead.
Reuters estimate from their survey was 6.4663, Bloomberg 6.4635
PBOC add in 180bn yuan through 7-day RRs in open market operations
- 280bn mature today
- thus a net 100bn drain today
On that chunky drain again today, the PBOC have been making some comments indicating they are wary of the rate of gains in equities and property. The Bank of course has to balance this with supporting the real side of the economy with monetary policy. The PBOC has said recently any change in policy will not be sudden (be careful of this sort of assurance, sometimes changes can be made with little or no notice ).
Ahead of lunar new year (early Feb) liquidity conditions often ease with PBOC injecting funds but we are seeing markets tightening - interbank borrowing costs have been rising.
