PBOC halted yuan depreciation, room to cut rates - Goldman Sachs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - A Bloomberg article cites Goldman Sachs's Economist Song Yu, who notes that the PBOC measures have halted the yuan depreciation, which now allows further room to cut rates, as policy makers are feeling less pressure and have more room to do what they want, the China-based Economist added.

    Among the actions taken by the PBOC to support the Yuan, include:

    Intervention through sales of USD/CNY

    Introducing new reserve requirements for forwards

    Making special checks of foreign-exchange trading

    Assistance of disappointing U.S. economic data reducing the chances of a Federal Reserve interest-rate increase this year

    verbal support

    Stronger settings for the yuan in the daily reference rate setting
    For more information, read our latest forex news.

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