The 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 PBoC continues to support the yuan.
In open market operations, the PBOC injected 64 billion yuan of 7-day Reverse Repo at an unchanged rate of 1.5%
- 355 bn matured
- thus net draining 291 billion yuan
This article was written by Eamonn Sheridan at www.forexlive.com.
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