China: PBoC tightens CNH liquidity - ANZ

FXStreet (Delhi) – Research Team at ANZ, notes that the PBoC announced reserve requirement ratios for overseas banks’ RMB deposits placed onshore.

Key Quotes

“While the longer term aim is to establish a mechanism for the PBoC to manage liquidity, the
near-term objective is to tighten liquidity and deter speculative positions in CNH.

We believe the authorities will be able to keep the RMB steady in the near term. But pressure on the currency will remain, given growth and deflation risks facing the economy.”