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.
Previous close was 7.2448
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The PBOC injects 2 billion via a 7-day RR and sets its rate unchanged at 1.8%
- 2 billion yuan of RR matures today
- therefore net neutral the same day in OMOs
This article was written by Eamonn Sheridan at www.forexlive.com.
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