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Beijing Has Seen Enough Yuan Appreciation
China has seen enough yuan appreciation.
On the heels of a virtually uninterrupted rally, the PBoC on Monday hiked the reserve ratio for banks' foreign currency holdings. Starting in two weeks, financial institutions must hold 7% of their foreign exchange in reserve "in order to strengthen the management of foreign exchange liquidity," a terse statement said.
It was the first move of its kind since 2007. The decision to make dollars and other FX more scarce onshore came as the yuan strengthene
We are witnessing the two biggest economic superpowers go toe to toe. Not sure if it’s martial arts or boxing but the fight is on. Autocratic control versus a deliberative democracy greatly in need of retooling and suffering from self delusion.