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People’s Bank of China sets USD/CNY benchmark rate for today at 7.0994 (vs. estimate of 7.2127)
![People’s Bank of China sets USD/CNY benchmark rate for today at 7.0994 (vs. estimate of 7.2127) People’s Bank of China sets USD/CNY benchmark rate for today at 7.0994 (vs. estimate of 7.2127)](https://i1.wp.com/images.forexlive.com/images/pboc%20People%27s%20Bank%20of%20China_id_0662cb0a-ba18-47da-b08e-25c60b60e43b_size975.jpg?w=975&resize=975,553&ssl=1)
The People’s Bank of China has set the onshore yuan (CNY) benchmark rate for the upcoming trading session.
- USD/CNY is the national yuan. It is permitted to trade at plus or minus 2% of this daily reference rate.
- CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
- A rate that is significantly stronger or weaker than expected is generally considered a signal from the PBOC.
China was on vacation, with markets closed on Wednesday, Thursday and Friday last week.
The PBOC injects 2 billion via a 7-day RR and sets its rate unchanged at 1.8%
- 10 billion yuan of RR matures today
- therefore 8 billion net leakage over the day in OMO
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