PBOC sets USD/ CNY reference rate for today at 7. 1466 (vs. estimate at 7.2233)

<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 7.2240</p><p>This is a huge difference between the expected and the actual rate set by the PBOC. The Bank is giving yuan shorts a hard time. </p><p>PBOC injects 26bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%</p><ul><li>5bn yuan of RRs mature today</li><li>thus a net 21bn yuan injection on the day in OMOs</li></ul>

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