The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- The onshore yuan is USD/CNY. It is allowed to trade plus or minus 2% from this daily reference level.
- CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
- A significantly stronger or weaker rate than expected is usually considered a signal from the PBOC.
The PBoC continues to support the yuan.
In open market operations, the PBOC injected 64 billion yuan of 7-day Reverse Repo at an unchanged rate of 1.5%.
- 355 bn mature
- thus a net drain of 291 billion yuan
This article was written by Eamonn Sheridan at www.forexlive.com.
Source link
