PBOC sets USD/ CNY reference rate for today at 7.2046 (vs. estimate at 7.2386)

<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 7.2450.</p><p>The People's Bank of China once again sets the onshore yuan much stronger than was expected. Keeping a lid on USD/CNY. </p><p>PBOC injects 2bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%
</p><ul><li>219bn yuan of RRs mature today
</li><li>thus a net 217bn yuan drain on the day in OMOs</li></ul><p>eur</p>

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