PBOC sets USD/ CNY reference rate for today at 7.1736 (vs. estimate at 7.2707)

<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 7.2760</p><p>7.1736 today is the strongest for CNY since 14 August. </p><p>PBOC injects 184bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%</p><ul><li>PBOC injects 60bn via 14 day RR, sets rate at 1.95% vs. 2.15% previously</li><li>215bn yuan of RRs mature today</li><li>thus a net 29bn yuan drain on the day in OMOs</li></ul>

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