PBOC sets USD/ CNY reference rate for today at 7.1729 (vs. estimate at 7.3009)The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
- A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 7.3066.
Another huge discrepancy in the model estimate and the actual. The PBoC have been doing this for weeks so its not a suprise.
PBOC injects 202bn in open market operations (OMOs) via 14-day RR, sets rate at 1.95%
- 105bn yuan of RRs mature today
- thus a net 97bn yuan injection on the day in OMOs
USD/offshore yuan update:
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: PBOC sets USD/ CNY reference rate for today at 7.1729 (vs. estimate at 7.3009) (https://www.forexlive.com/centralbank/pboc-sets-usd-cny-reference-rate-for-today-at-71729-vs-estimate-at-73009-20230922/)
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