PBOC sets USD/ CNY reference rate for today at 7.1729 (vs. estimate at 7.3009)

<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 7.3066.</p><p>Another huge discrepancy in the model estimate and the actual. The PBoC have been doing this for weeks so its not a suprise.</p><p>PBOC injects 202bn in open market operations (OMOs) via 14-day RR, sets rate at 1.95%</p><ul><li>105bn yuan of RRs mature today</li><li>thus a net 97bn yuan injection on the day in OMOs</li></ul><p>USD/offshore yuan update:</p>

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