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PBOC sets USD/ CNY reference rate for today at 7. 1466 (vs. estimate at 7.2233)
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 7.2240. PBOC injects 26bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9% • 5bn yuan of RRs mature today. • Thus a net 21bn yuan injection on the day in OMOs.