The USD/CNY set higher from the PBOC, makes sense given the USD gains Friday. It was slow today, usually a sign of a big move from the previous fix and a much higher USD/CNY.
While in open market operations (OMOs) today
- PBOC Inject 50bn yuan through 7-day reverse repos
- PBOC Inject 20bn yuan through 14-day reverse repos
On Friday the RMB was set at 94.64 against its basket
October is a little over two weeks old and already the USD/CNY is up nearly 1% on the month.
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A few headlines hitting on China now:
- China should keep prudent, neutral monetary environment
- China should keep ample liquidity in the banking system
- China should keep using monetary policy tools flexibly
- China should keep reasonable aggregating finance size
(via Bloomberg)
ps. Over the weekend .... (Friday actually):
- The U.S. Treasury said on Friday that none of the United States' major trading partners is manipulating its currency
- the Treasury said it added Switzerland to a foreign exchange "monitoring list" of countries with high external surpluses or currency market interventions.
- It also kept China, Japan, Germany, South Korea and Taiwan on the list
- But it said none of the six countries met the standard for enhanced scrutiny
- Treasury said China's performance actually improved since the April report. It now meets only one of the three criteria, its $356 billion bilateral goods trade surplus with the United States.
