PBO has set RRR at 20% for offshore yuan forwards. Expanding RRR requirements for offshore yuan trading is a serious step from PBOC, probably caused by another wave of speculation, contributing to the recent yuan weakening.
PBOC imposed RRR for onshore FX forward trading on foreign banks. China’s FX trading platform will strengthen macroprudential assessment on foreign financial firms entering the Chinese interbank market.
PBOC is serious when it comes to yuan, markets continue to move in a risk-off mode.
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