PBOC sets USD/ CNY mid-point today at 7.2157 (vs. estimate at 7.2464)

<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 7.2510</p><p>A much stronger than expected for the CNY. This is the fifth day in a row the PBC has set the CNY stronger than expectations. The Bank has been expressing its desire to slow the decline of the yuan. </p><p>PBOC injects 5bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%</p><ul><li>440bn yuan of RRs mature today</li><li>thus a net 435bn yuan drain on the day in OMOs</li></ul><p>more to come</p><p>eur</p>

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