PBoC to tighten FX rules amid yuan gains
RRR for FX deposits to rise by 2 percentage points to ‘strengthen foreign exchange liquidity management’
China’s central bank has tightened foreign exchange rules in an apparent attempt to slow renminbi gains following the currency’s sustained appreciation against the dollar.
The People’s Bank of China announced today (November 3) that it would raise the reserve requirement ratio (RRR) for FX deposits held by financial institutions from 4% to 6% from November 15. The PBoC said the decision was designed to “strengthen the management of foreign exchange liquidity in financial institutions”.
The yuan
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