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 for USD/CNY was 6.3393
The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)
100bn yuan mature today
thus a net 90bn yuan drain
All this week the PBOC have been injecting large sums. The new month has brought a net drain for today though. Over the week the net injection is 420bn yuan. Quarter end now though, so the big injections are over.
