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USD/CNH Rallies as PBoC Raise FX RRR by 2ppts

CHINA
  • The PBoC announce they are to raise the Forex reserve requirement ratio by 2 percentage points, thereby incentivising commercial banks to hold more in FX reserves, implicitly boosting demand for USD while restricting supply. This is the second such policy move from the Chinese central bank this year, having raised the FX RRR at the end of May.
  • USD/CNH rallies around 0.2% to touch session highs at 6.3624.

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