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 7.0111
The rate at 7.0074 is the strongest, for CNY, since May 18 2023.
In open market operations (OMOs):
PBOC injects 212bn via 7-day RR, sets rate at 1.5% (this was lowered on Friday)
–
—
Weekend news from China – lower rates and easing housing restrictions:
More stimulus from China over the weekend – banks instructed to cut mortgage rates
This is the last reference rate for the week, China is on holiday after today and back on Tuesday 8 October.
This article was written by Eamonn Sheridan at www.forexlive.com.
