PBOC sets USD/ CNY reference rate for today at 7.1105 (vs. estimate at 7.1870)

<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 7.1932</p><p>**</p><p><a href="https://www.forexlive.com/centralbank/pboc-loan-prime-rates-lpr-are-unchanged-1-year-345-5-year-420-as-expected-20240122/" target="_blank" rel="follow">No change to LPRs</a></p><p>**</p><p>PBOC injects 122bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>89bn yuan of RRs mature today</li><li>thus a net 33bn yuan injection on the day in OMOs</li></ul><p>– </p><p>ps. Lunar New Year holidays in China are:</p><ul><li>February 10 to February 17 (eight days in total)</li><li>employers are encouraged to arrange paid leave for employees on New Year’s Eve, February 9</li></ul><p>The People's Bank of China will provide added liquidity ahead of February 9 via multiple tools including OMOs to meet increased demand for cash leading into and right over the Lunar New Year holiday period.</p>

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