PBOC injects 70bn yuan via 7-day reverse repos
Another strengthening of the CNY again today from the People's Bank of China
For the week, the bank has injected 265bn yuan (net). Was a net 65 bn drain last week.
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What's the significance of the reference rate? It's a 'mid point', the People's Bank of China will allow USD/CNY to trade plus or minus 2% around this price. USD/CNY is managed by the central bank, it doesn't float.
There is an 'offshore' yuan, the CNH, and it can trade without the +/- 2% restriction.
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