logo
  

China Central Bank Adopts Measures To Safeguard Yuan

peoplesbankofchina 031617 26sep22 lt

China's central bank ramped up measures to safeguard the yuan from further depreciation on Monday as the U.S. Dollar continued to strengthen on the Federal Reserve's tightening stance.

The People's Bank of China decided to raise the risk reserve requirement for banks' forward forex sales to 20 percent from zero. The new rate will take effect on September 28.

This foreign exchange risk reserves for financial institutions when buying forex through currency forwards were lowered to zero in October 2020.

The PBoC had set the central parity rate of the renminbi at 7.0298 per dollar on Monday, the weakest since mid-2020. The currency is allowed to move within the range of 2 percent above or below the central parity each trading day in the spot market.

Despite the announcement on reserve requirement for forward forex trade, the currency ended the session weaker today, at 7.1464 per dollar.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Weis Markets, Inc., a Mid Atlantic food retailer, has recalled 108 containers of Weis Quality Sea Salt Caramel Ripple Ice Cream citing possible presence of undeclared soy and coconut allergens, the U.S. Food and Drug Administration said. The recalled product comes in 48oz containers that says Weis Quality Sea Salt Caramel Ripple Ice Cream, while the lid says Weis Quality Caramel Caribou Ice Cream Amazon.com Inc. plans to spend more than $1 billion annually to produce movies that will get a theatrical release, Bloomberg reported, citing people familiar with the matter. The online retailer giant, which acquired movie maker MGM Studios earlier this year for $8.45 billion, is likely to produce between 12 and 15 movies each year for movie theaters. New York-based Bentex Group has recalled various children's clothing sets due to violation of the federal lead paint and lead content ban, as well as lead poisoning risk, the U.S. Consumer Product Safety Commission said. The recall involves about 87,000 units of Bentex children's clothing sets in nine different Disney themed styles.
Follow RTT