PBOC sets USD/ CNY reference rate for today at 7.1768 (vs. estimate at 7.2648)

<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 7.2580.</p><p>Another strong setting for the CNY, like yesterday. It was shrugged off by the market on Monday. </p><p>In other PBOC news the Bank plans to issue CNY 20bn of 3-month bills and CNY 15bn of 1-year bonds in Hong Kong on August 22.</p><p>The PBOC has cut the 7 day reverse repo rate. To 1.8% from prior 1.9%.</p><ul><li>inject 204bn yuan</li><li>net injection 18bn yuan </li></ul><p>We are awaiting the MLF setting too:</p><ul><li><a href="https://www.forexlive.com/centralbank/add-this-to-the-data-agenda-today-pboc-mlf-announcement-due-15-august-2023-20230815/" target="_blank" rel="follow" data-article-link="true">Add this to the data agenda today – PBOC MLF announcement due 15 August 2023</a></li></ul>

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