PBoC off-setting FX intervention - SG

FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale explained that the PBoC has been using reserves to prevent rmb depreciation, which tightens domestic liquidity.

Key Quotes:

"And so, the PBoC has announced its first country-wide RRR cut in a couple of years."

"This also helps offset further FX intervention and so signals a willingness/desire to keep USD/CNY in the current range."