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FX RRR Hike Only the Second Policy Tweak Since 2007

CHINA
  • The PBoC's tweak to FX RRR today is effective from Dec15 - the same day the headline RRR cut announced on Monday will also come into force.
  • Today's FX RRR hike is the second of the year (they last hiked the rate to 7% from 5% at the end of May), but it's a very rarely used tool - before May it was last tweaked in 2007 and could be a sign that authorities are uncomfortable with recent CNY strength.

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