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在线翻译:
szdaily -> Markets -> 
Central bank to raise reserves for forex settlements
    2018-08-06  08:53    Shenzhen Daily

THE central bank said it would require banks to keep reserves equivalent to 20 percent of their clients’ foreign exchange forwards positions from today, in a move to stabilize the yuan currency.

The yuan has fallen to 14-month lows against the dollar in the onshore spot market as the trade dispute between the United States and China worsened. The reserve requirement ratio had been set at zero since last year.

In a statement on its website Friday, the People’s Bank of China said it would take counter-cyclical measures to keep foreign exchange markets stable.

The move is a transparent, non-discriminatory, price-based prudential policy tool, not a capital control, it said.

Raising forex settlement reserve requirements is meant to fend off macro financial risks and promote the stable operations of financial institutions, the People’s Bank of China said in the statement.

China’s offshore yuan rose sharply after the news, hitting a session high of 6.8270, up 0.8 percent on the day.

“It’s a gesture to show that the yuan is not in free fall, that the People’s Bank of China is still behind it,” said Gary Ng, an economist at Natixis in Hong Kong. “They won’t want to see the yuan depreciate beyond 7, which is a very important psychological level.”

Earlier Friday, banks were seen selling dollars at around 6.9 per dollar in the onshore market, three traders said.

The onshore spot market finished domestic trading at 6.8620 per dollar, having strengthened from a level of 6.8965 at one point, its lowest since May 15, 2017. It had opened at 6.8571.

The People’s Bank of China adopted reserve requirements for financial institutions settling foreign exchange forward yuan positions in July 2016 before scrapping them last September, when China was anxious to quash one-way bets on the yuan as outflows eased and exporters faced strain.

(SD-Agencies)

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