China encourages dollar buying to slow yuan ascent - Reuters

<a href="https://news.google.com/rss/articles/CBMiswFBVV95cUxPS2xvdlRBLXlpSUdwOFhVbWZLbkdKQk5QU2pGejlzeFBZOGtCTG5Cb3A5N1ozWFI3ZkhaQ0tfd05wZjFxTTg4QjZmNks1NS1DelppSXRucHNJSy1aeG9XNDdkTFU3VlJmTFZRa2VvYVZmS0VCNFhJaGZnX1Z5ekEwVXJKLUVsR2VVZElmTUFFMUNFa05TNi0zc2pZTF8zQ2x1NW9HeUFwQTFva1lsV1VjN3lKdw?oc=5" target="_blank">China encourages dollar buying to slow yuan ascent</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

China's central bank has reduced the risk reserve requirement ratio for foreign-exchange forward trading to zero from 20%, effective March 2. This action aims to make dollar purchases cheaper and manage the yuan's recent appreciation.

The People's Bank of China announced it will eliminate the foreign exchange risk reserves for some forward contracts, reducing the cost of dollar buying. The change takes effect on March 2, reversing a previous decision aimed at curbing yuan depreciation.

The onshore yuan reached a 2½-year high, with USD/CNY falling below 6.90. The People's Bank of China set a firmer fix at 6.9414, indicating greater tolerance for yuan strength.

The offshore yuan traded at 6.867 per US dollar, its strongest level since April 2023, amid growing uncertainty over the US dollar. The People's Bank of China set the daily fixing at 6.9321 per US dollar, the strongest since May 2023.

China's central bank has moved to slow the pace of rapid yuan appreciation by scrapping the foreign exchange risk reserves for some forward contracts, encouraging dollar buying.

China’s yuan climbed to a four-month high against the dollar, as the greenback was affected by US economic concerns caused by President Donald Trump’s unpredictable trade policies.

China's central bank is intervening to slow the yuan's rapid climb by removing foreign exchange risk reserve requirements for certain forward contracts, encouraging dollar buying.

The People's Bank of China (PBoC) announced a reduction of the foreign-exchange risk reserve ratio to 0% from 20%, effective March 2, aiming to temper the yuan's appreciation. This move makes dollar purchases via forwards cheaper, signaling discomfort with rapid yuan gains.

China's central bank has taken steps to manage the rapid appreciation of the yuan by eliminating the 20% foreign exchange risk reserve requirement on certain forward contracts, encouraging dollar buying.