PBOC sets USD/ CNY reference rate for today at 7.1070 (vs. estimate at 7.2088)

<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 7.1940</p><p>more to come</p><p>PBOC injects 100bln yuan via 14-day reverse repos with the rate at 1.95%</p><ul><li>500bn yuan of RRs mature today</li><li>thus a net 400bn yuan drain on the day in OMOs</li></ul>

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