Wednesday , September 20 2017
Home / Blogs / PBOC Has $27.5b Risk Reserves Due to Forwards Rule: Scotiabank
A customer checks his U.S. dollar notes in a bank in Cairo, Egypt March 10, 2016. REUTERS/Amr Abdallah Dalsh

PBOC Has $27.5b Risk Reserves Due to Forwards Rule: Scotiabank

(Bloomberg) — China’s central bank accumulated $27.5
billion of foreign exchange on its balance sheet due to rule
that had required banks to set aside a 20% reserve requirement
on trading FX forwards, Scotiabank strategist Gao Qi writes in
note Monday.
* READ: PBOC Is Said to Remove Reserve Rule for FX Forwards
Trading
* Move aimed at curbing yuan’s “surprise appreciation” and
reducing cost for forwards trading activities
* USD/CNY to rebound in spot and forwards as knee-jerk reaction;
yuan to consolidate around 6.5/USD for now
* Currency to advance further on account of EUR’s potential
rally
* NOTE: CNY drops 0.21% Monday to 6.5026 per dollar as of 10:40
a.m. in Shanghai amid a weaker than expected fixing, the FX
forwards rule change and a rise in the Bloomberg Dollar Spot
Index

To contact Bloomberg News staff for this story:
Tian Chen in Beijing at tchen259@bloomberg.net
To contact the editors responsible for this story:
Richard Frost at rfrost4@bloomberg.net

About Makkaba Co., Ltd.

Makkaba Co., Ltd.

(+84) (0)28.37402486
Email: m2mtradingsignals@gmail.com - Phone:

Check Also

THE ASIA FX/RATES DAYBOOK: FX/RATES DAYBOOK ASIA: USD, USTs Dip in Quiet Market Before FOMC

(Bloomberg) — The dollar lost ground against a majority of its G-10 peers as investors …

EUROPE DAYBOOK: EUROPEAN DAYBOOK & OVERNIGHT: Finland’s Budget, Spanish Bills

(Bloomberg) — Finland government meets on 2018 budget. Spain to sell bills. Ocado scheduled to …

Leave a Reply

Your email address will not be published. Required fields are marked *