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PBOC Likely To Stabilize Yuan If 7.3 Level Is Breached

MNI (Singapore)

The People’s Bank of China may move to stabilize the yuan should the currency weaken further and breach 7.3 against the U.S. dollar. The PBOC is likely to increase the risk reserve requirement on FX forward sales, which will increase the cost of FX sales, said Yang Yiping, macro researcher at Galaxy Futures. Yang said the FX reserve requirement ratio also has room for downward adjustment. The PBOC has cut the RRR to 6% from 8% since September 2022, while the rate was once as low as 3% historically, Yang added. Onshore and offshore yuan fell to 7.26 and 7.29 on Monday respectively, both hitting the weakest level since June 30. (Source: 21st Century Business Herald)

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