PBOC sets USD/ CNY mid-point today at 7.1773 (vs. estimate at 7.2839)

<p>The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li><li>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p>The previous close was 7.2790</p><p>7.1733 is the strongest for the CNY (lowest for USD/CNY) since September 27.</p><p>PBOC injects 474bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>391bn yuan of RRs mature today</li><li>thus a net 83bn yuan injection on the day in Open Market Operations (OMOs)</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.