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PBOC sets USD/ CNY reference rate for today at 7.2006 (vs. estimate at 7.3065)

Another huge discrepancy between the modelled expectation and the PBOC decision. Yesterday was a 10 big figure deviation, today also. The Bank is signalling it’d like to slow the pace of the yuan’s fall. State banks have been intervening to sell USD/CNY also:

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 7.2888

more to come

PBOC injects 98bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%

  • 2bn yuan of RRs mature today
  • thus a net 96bn yuan injection on the day in OMOs

The yuan is barely off its lows:

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