PBOC sets USD/ CNY mid-point today at 7.1992 (vs. estimate at 7.3097)

<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 7.2816</p><p>Like it says above, a 10+ big figure difference between the modelled estimate and the actual. This is the PBOC attempting to slow the fall of the RMB. The spread between the US 10-year and China 10 year government bonds has widened to 180bps. Widest since 2007. Its little wonder the yuan is dropping away .</p><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/jp-morgan-says-the-chinese-yuan-will-keep-on-falling-20230822/" target="_blank" rel="follow" data-article-link="true">JP Morgan says the Chinese yuan will keep on falling</a></li></ul><p>PBOC injects 111bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%</p><ul><li>204bn yuan of RRs mature today</li><li>thus a net 93bn yuan drain on the day in OMOs</li></ul>

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