China Takes Its Most Visible Measure Yet to Curb Yuan’s Gain – Yahoo Finance
(Bloomberg) — China forced banks to hold more foreign currencies in reserve for the first time in more than a decade, its most substantial move yet to rein the surging yuan.
The nations financial institutions will need to hold 7% of their foreign exchange in reserve from June 15, according to a central bank statement Monday. Thats an increase of 2 percentage points, and the first such hike since 2007. The move, which the Peoples Bank of China said will help liquidity management, effectively reduces…
