FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, notes that the Chinese authorities’ decided to impose a reserve requirement on offshore renminbi deposits. Key Quotes “The Chinese move doesn’t fill markets with much optimism because it sends a message of policy bveing made in reaction to market developments. The ‘plan’ seems clear enough as we saw another day of stability in the USD/CNY fix, and a lower USD/CNH rate too, but the danger is that this just leaves markets to focus attention elsewhere. As policy is made ‘on the hood’ what matters is whether the pace of capital outflows and currency reserve depletion slows in the months ahead. In the meantime, tomorrow’s release of Q4 Chinese GDP, and December retail sales/capex/IP/retail sales data will be treated with a degree of scepticism but still, should show some economic stabilisation that might just help calm markets.” For more information, read our latest forex news.