PBoC dials back on forex controls

People’s Bank of China headquarters, Beijing
The People's Bank of China has taken measures to nudge down the yuan

The People’s Bank of China (PBoC) has scaled back its defensive mechanism around renminbi by removing the reserve requirements for foreign exchange.

Analysts believe the move is designed to bring in more uncertainty to forex markets and avoid one-way trading, as officials have expressed concerns about the recent strength in the yuan.

According to state media Xinhua, China’s central bank has cancelled the reserve requirements for financial institutions settling foreign exchange forward renminbi

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