PBOC sets USD/ CNY reference rate for today at 7.1883 (vs. estimate at 7.2923)

<p>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>The PBOC is still sitting on the fixing rate to support the yuan. Another 10+ big figure difference between the modelled estimate and the actual.</p><p>Yuan has stabilised with the PBOC actions:</p><p>PBOC injects 221bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%</p><ul><li>98bn yuan of RRs mature today</li><li>thus a net 123bn yuan injection on the day in OMOs</li></ul>

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