PBOC sets USD/ CNY reference rate for today at 7.1781 (vs. estimate at 7.3165)

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 7.3171

PBOC injects 658bn via 7-day RR, sets rate at an unchanged 1.8%

• 808bn yuan of RRs mature today
• thus a net 150bn yuan drain on the day in Open Market Operations (OMOs)