PBOC sets USD/ CNY central rate at 7.1010 (vs. estimate at 7.1502)

<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 7.1529</p><p>PBOC injects 65bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>222bn yuan of RRs mature today</li><li>thus a net 157bn yuan drain on the day in OMOs</li></ul><p>ps. The yield on China's 10 year government bond has fallen below 2.5%, its lowest since April 2020. </p><p>I posted earlier on:</p><ul><li><a href="https://www.forexlive.com/centralbank/why-the-peoples-bank-of-china-cant-ease-the-economic-headwinds-away-20240108/" target="_blank" rel="follow" data-article-link="true">Why the People's Bank of China can't ease the economic headwinds away</a></li></ul><p>But, they may not have much choice at this rate. </p>

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