PBOC sets USD/ CNY reference rate for today at 7.2006 (vs. estimate at 7.3065)

<p>Another huge discrepancy between the modelled expectation and the PBOC decision. Yesterday was a 10 big figure deviation, today also. Even more so today, the difference between the rate set and the estimate is the largest on record. The Bank is signalling it'd like to slow the pace of the yuan's fall. State banks have been intervening to sell USD/CNY also:</p><ul><li><a href="https://www.forexlive.com/centralbank/icymi-further-intervention-from-china-to-support-the-yuan-overnight-20230817/" target="_blank" rel="follow" data-article-link="true">ICYMI – further intervention from China to support the yuan overnight</a></li></ul><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 7.2888</p><p>more to come</p><p>PBOC injects 98bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%</p><ul><li>2bn yuan of RRs mature today</li><li>thus a net 96bn yuan injection on the day in OMOs</li></ul><p>—</p><p>The yuan is barely off its lows:</p>

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