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The People's Bank of China cut the foreign exchange reserve requirement ratio by 1 percentage point to 8%, effective May 15. The yuan had fallen about 3% in April, and the central bank set its midpoint at its weakest level since April 2021.
The cut lowers the foreign currency banks must hold, easing pressure on the yuan and supporting Chinese import capacity for commodities. It signals that Beijing is willing to slow currency weakness.
cnbc.comEvelyn ChengApr 27, 2022After 50 past bearish policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% 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.
Reports the PBOC's weakest midpoint since April 2021 and a roughly 3% April fall, showing persistent depreciation pressure into the 28th despite the policy response.
