PBOC sets USD/ CNY mid-point today at 6.3858 (vs. yesterday at 6.4030)

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.    

  • USD/CNY is 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.
  • The previous close was 6.3840  
  • Reuters estimate from their survey was 6.3790, Bloomberg 6.3837 …. (A rate that’s significantly stronger or weaker than expected is typically considered a signal from the PBOC). 

The rate is a surprise from the PBOC, weaker than expected for the yuan. Yuan has been on a rip, the PBOC is not unhappy with this but they don’t want the pace of appreciation to run away from them. 

injects 10 billion yuan liquidity via 7-day reverse repo

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