PBOC sets USD/ CNY reference rate for today at 7.1778 (vs. estimate at 7.3327)

<p>The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li><li>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p>The previous close was 7.3166</p><p>The 1549 point discrepancy between the Reuters estimate and the actual is the biggest this year. </p><p>PBOC injects 391bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>500bn yuan of RRs mature today</li><li>thus a net 109bn yuan drainon the day in Open Market Operations (OMOs)</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.