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The PBOC raised the foreign-currency deposit reserve ratio for banks from 5% to 7%, effective June 15. The move is aimed at curbing sell-offs of foreign currency after the yuan hit a record high, and it is the first such increase since May 2007.
Tighter dollar liquidity in China's onshore market can raise the cost of foreign-currency loans and may slow the yuan's climb. That affects the purchasing power of Chinese importers buying dollar-priced feed ingredients.
chinadaily.com.cnCHEN JIAMay 31, 2021After 42 past neutral policy events, USDCNY moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
