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PBOC Sends Clear Signal To Stabilise Yuan

CHINA PRESS
MNI (Singapore)

The People's Bank of China still has plenty of policy tools to deal with abnormal fluctuations of the yuan, following its recent movement to increase the issuance of central bank bills in Hong Kong to tighten the liquidity of offshore yuan, said Ming Ming, chief economist of CITIC Securities. The yuan may face depreciation pressure in the short term, as the U.S. dollar index remains high due to the resilience of the U.S. economy, Ming added. The PBOC should raise the forex risk reserve ratio in due course to curb herding behaviour in forex trading, said Wang Qing, analyst at Golden Credit Rating. (Source: Shanghai Securities News)

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