PBOC sets USD/ CNY reference rate for today at 7.1786 (vs. estimate at 7.2849)

<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 7.2768</p><p>PBOC injects 105bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%</p><ul><li>PBOC inject 34bn via 14 day RR, sets rate at 1.95% vs. 2.15% previously </li><li>363bn yuan of RRs mature today</li><li>thus a net 224bn yuan drain on the day in OMOs</li></ul><p>This: PBOC sets 14 day RR rate at 1.95% vs. 2.15% previously</p><ul><li>is another rate cut from the Bank</li><li>we haven't had a 14 dayer in many months</li></ul><p>-</p><p>And, coming up still from China:</p><ul><li><a href="https://www.forexlive.com/centralbank/its-a-big-day-coming-up-in-china-economic-data-and-the-monthly-rate-setting-mlf-20230915/" target="_blank" rel="follow" data-article-link="true">It's a big day coming up in China – economic data and the monthly rate setting (MLF)</a></li></ul>

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