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<p>People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><p>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</p><p>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</p><p>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</p><p>The previous close was 6.9066</p><p>The reference rate is a good way from that estimate, the PBOC trying to slow the devaluation of the yuan. This is eight consecutive days now the Bank has held the CNY stronger than the estimate.</p><p>---</p><ul><li>The PBOC injects 2 yuan via 7-day reverse repos (rate remains at 2.0%)2bn yuan mature todaythus a net neutral in OMOs today</li></ul><p>--- <a href="https://www.forexlive.com/terms/e/eur/" target="_blank" id="b0427fd7-674c-4ad1-b689-22d1f8b087b0_1" class="terms__main-term">eur</a></p><p>A reference rate for USD/CNY well below the estimate has become the new normal:</p><ul><li><a href="https://www.forexlive.com/centralbank/the-estimate-for-the-usdcny-reference-rate-setting-from-the-pboc-today-is-above-692-20220902/" target="_blank" data-article-link="true">The estimate for the USD/CNY reference rate setting from the PBOC today is above 6.92</a></li></ul>

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