PBOC sets USD/ CNY central rate at 7.1132 (vs. estimate at 7.1432)

<p data-v-2b84ef95="">The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul data-v-2b84ef95=""><li data-v-2b84ef95="">USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li data-v-2b84ef95="">CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li><li data-v-2b84ef95="">A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p data-v-2b84ef95="">The previous close was 7.1528</p><p>7.1132 is the strongest for the onshore yuan since June 9.</p><p>PBOC will auction CNY 5.0bln in central bank bill swaps today</p><p><br></p><p data-v-2b84ef95="">PBOC injects 415bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul data-v-2b84ef95=""><li data-v-2b84ef95="">193bn yuan of RRs mature today</li><li data-v-2b84ef95="">thus a net 96bn yuan injection on the day in Open Market Operations (OMOs)</li></ul><p>In the face of growing public debt, Chinese financial regulators have been increasing liquidity at a never-before-seen rate in recent months in an attempt to contain short-term interest rate volatility.&nbsp;There have been&nbsp;six instances where China extended more than 1 trillion yuan&nbsp;in net liquidity in a weeklong span. Four of those weeks occurred in the months since September.</p>

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