PBOC sets USD/ CNY mid-point today at 6.7898 (vs. estimate at 6.7955)

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 6.7872 Yesterday’s reference rate was 6.7292. The People’s Bank of China has taken the axe to the CNY mid-rate today, lower (for CNY) by 600+ points. The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%) 0bn yuan mature today thus a net 10bn injection This is the offshore yuan, CNH. Huge weakening. eur