© Reuters.
investing.com – China on Friday announced new measures to support the troubled one, as Beijing once again tries to give the country’s economy a much-needed fresh boost.
The People’s Bank of China said that from September 15, it will reduce the amount of foreign currency deposits that financial institutions are required to hold from 6% to 4%.
This move is likely to increase the flow of foreign currency into the domestic markets, which will make the yuan more attractive as an investment for Chinese merchants.
The yuan fell 1% against the greenback in August, bringing its annual loss to about 5%. It is trading at less than 7.3 yuan/dollar, which puts it close to an all-time low against the dollar.
This drop comes amid a torrent of warning signs about the health of the Chinese economy, which is battling the specter of deflation, falling exports and slowing growth.
Beijing is also experiencing a sluggish housing market – hours before Friday’s yuan-related announcement, policymakers had cut minimum payments and mortgage rates in a bid to support the sector.
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2023-09-03 21:45:00
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