PBOC sets USD/ CNY reference rate for today at 7.1775 (vs. estimate at 7.3179)

<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 7.3059</p><p>PBOC injects 95bn via 7-day RR, sets rate at an unchanged 1.8%
</p><ul><li>0 yuan of RRs mature today
</li><li>thus a net 95bn yuan injection on the day in OMOs
</li></ul><p>Contrasting with the big drains all this week after the holiday. A total of 1,176 billion yuan was drained from the market this week. This was the largest amount for 9 months. </p>

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