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在线翻译:
szdaily -> Markets
Central bank relaxes yuan hedging rules
    2017-September-12  08:53    Shenzhen Daily

THE central bank yesterday took steps to lower the cost of hedging the yuan as capital outflows ease and the currency strengthens, suggesting authorities are anxious to quash one way bets on the yuan as exporters come under increasing strain.

The People’s Bank of China has scrapped reserve requirements for financial institutions settling foreign exchange forward yuan positions, it said in a statement.

The central bank also said it has stopped requiring foreign banks to put aside reserves for offshore yuan deposits in China.

The central bank said the changes were made in consideration of current market conditions and the yuan strength against the U.S. dollar this year reflected the improvement of the Chinese economy.

“The short term impact of this is that there are now fewer restrictions on banks’ dollar purchases,” said Iris Pang, economist at ING, in a note to clients.

“One interpretation is that the pace of onshore yuan appreciation has taken the central bank, as well as the market by surprise. We believe that onshore yuan appreciation will continue, but at a slower pace from now on.”

The central bank set the yuan midpoint at 6.4997 per dollar yesterday, strengthening it beyond the key psychological 6.5 level for the first time since May 2016.

Despite the stronger midpoint, the offshore and onshore yuan were both trading below the 6.5 level yesterday. (SD-Agencies)

 

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