PBOC sets USD/ CNY central rate at 7.1406 (vs. estimate at 7.1677)

<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 7.1655</p><p>7.1406 is the strongest reference rate for CNY since August 7 and the first time the CNY mid-rate is stronger than than the estimate since July.</p><p>-</p><p>PBOC injects 319bn via 7-day RR, sets rate at an unchanged 1.8%
</p><ul><li>
434bn yuan of RRs mature today
</li><li>thus a net 115bn yuan drain on the day in Open Market Operations (OMOs)</li></ul>

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