PBOC sets USD/ CNY reference rate for today at 7.0770 (vs. estimate at 7.0971)

<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 7.0978</p><p>7.0770 is the strongest fixing rate for CNY since 29 May 2023</p><p>PBOC injects 137bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>1006bn yuan of RRs mature today</li><li>thus a net 869 bn yuan drain on the day in OMOs</li></ul>

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