Technical Analysis

PBOC sets USD/ CNY reference rate for today at 6.7602 (vs. estimate at 6.7644)

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 6.7689

People’s Bank of China:

injects 133bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0%
injects 447bn yuan in 14-day RRS, rate unchanged at 2.15%

65bn yuan of RRs mature today

Thus a net 515 bn yuan injection.

The hefty injections comes ahead of the extended Lunar New Year holiday that begins on January 21. Demand for cash surges over this holiday break.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button