PBoC scraps reserve requirements as capital flows ease
Renminbi slides against dollar as Chinese central bank reversed two measures it put in place to fight speculation
The People’s Bank of China (PBoC) has scrapped two reserve requirements it put in place to curb capital outflows and speculation against the renminbi, in a sign the central bank is less concerned about the depreciation of its currency.
On September 8, the PBoC reduced the reserve requirement on onshore currency forward transactions to 0% from 20%. The requirement was enacted in October 2015 at a time when the yuan was under devaluation pressure, following the August 11, 2015, exchange rate
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