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 6.8286
Big jump for the yuan at the reference rate setting today, 300+ stronger for CNY. You can see by the previous close the CNY gained on Thursday.
PBOC injects 7 bn yuan in open market operations (OMOs) via 7 day reverse repos (RRs) at an unchanged rate of 2%
- 180bn yuan of RRs mature today
- thus a net drain of 173bn yuan
For the week, net drain of 113bn yuan
