- USD/CNY is 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 6.3778
- Yesterday's reference rate was 6.3498
The mid rate for today is a long way from the estimate, much weaker for the CNY than was expected. This is a strong signal from the PBOC that the yuan has weakened enough for now.
PBOC injects 10bn yuan via 7-day reverse repos
- 10bn yuan mature today
- thus a net neutral in open market operations (OMO)
- for the week the People's Bank of China drained 180bn yuan via OMOs
