PBOC sets USD/ CNY reference rate for today at 6.9305 (vs. estimate at 6.9228)

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PBOC sets USD/ CNY reference rate for today at 6.9305 (vs. estimate at 6.9228)

<p>People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul><li>6.9305 is the weakest onshore yuan setting since August 18 of 2020</li><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li></ul><ul><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 6.9971</p><p>The
PBOC injects 2 yuan via 7-day reverse repos (rate remains at 2.0%)</p><ul><li>2bn yuan mature today</li><li>thus a net neutral in OMOs today</li></ul><p>---</p><p>The offshore yuan weakened beyond 7 to the USD. </p><ul><li>The USD is so strong, has been for months. </li><li>Add in China capital flight flows (not a cascade yet but its building) as headwinds for the CNH against the USD. </li></ul><p>-</p><p>eur</p>

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

Source: PBOC sets USD/ CNY reference rate for today at 6.9305 (vs. estimate at 6.9228)

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