PBOC sets USD/ CNY reference rate for today at 7.1176 (vs. estimate at 7.1623)

<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 7.1581</p><p>PBOC injects 363bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>663bn yuan of RRs mature today</li><li>thus a net 300bn yuan drain on the day in Open Market Operations (OMOs)</li></ul><p>***</p><p>I posted earlier on the yuan being offered ever since Moody's action on Tuesday:</p><ul><li><a href="https://www.forexlive.com/centralbank/chinas-state-banks-stepped-in-to-support-yuan-tuesday-moodys-downgraded-chinas-outlook-20231205/" target="_blank" data-article-link="true">China's state banks stepped in to support yuan Tuesday, Moody's downgraded China's outlook</a></li><li><a href="https://www.forexlive.com/centralbank/further-reports-of-chinese-state-banks-fx-intervention-to-support-yuan-selling-usdcny-20231206/" target="_blank" data-article-link="true">Further reports of Chinese state banks FX intervention to support yuan, selling USD/CNY</a></li></ul><p>Update on offshore yuan:</p>

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