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PBOC Tools Could Further Boost A Weaker Yuan: Daily

CHINA PRESS
MNI (Singapore)

The People’s Bank of China could use more tools to stabilise the yuan after it cut the foreign currency reserve requirement for banks by one percentage point to 8% on Monday, the Securities Daily reported citing Chang Ran, senior researcher of Zhixin Investment Research Institute. The cut is relatively cautious, compared with the two 2-pps hikes last year in response to the strong appreciation of yuan, Chang was cited as saying. The 1pps cut can release about USD10.5 billion of foreign exchange liquidity, which will promote the basic stability of yuan and meet the funding needs of repaying foreign debts, the newspaper said citing analysts.

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