PBOC sets USD/ CNY reference rate for today at 7.1856 (vs. estimate at 7.2854)

<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 7.2865</p><p>Another 10 big figure (OK, 2 pips off!) difference between the modelled estimate and the PBoC setting. The Bank has done this over and again in past weeks to stem the drop in the yuan. Successfully so far. </p><p>PBOC injects 332bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%</p><ul><li>34bn yuan of RRs mature today</li><li>thus a net 298bn yuan injection on the day in OMOs</li></ul>

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