The PBOC will effectively remove a reserve requirement for trading FX forwards today

Author: Eamonn Sheridan | Category: Central Banks

The People's Bank of China will stop requiring financial institutions to set aside cash when buying dollars for clients through currency forwards

  • Bloomberg had the report after hours in China Friday
  • New rules is said to come into effect today, September 11
  • The current RR is 20%
  • There has been no response from the PBOC on the report so far
In effect this would slow the rate of gain for the yuan (it makes it easier for traders and investors to buy USD against the CNY), which has surged over the past weeks