Wen Bin

Rule Changes

Active analyst

The People's Bank of China will require banks to hold 6% of foreign currency deposits in reserve from November 15, up from 4%. That pulls roughly $24 billion of dollar liquidity out of the banking system. The yuan weakened on the news and kept sliding as the central bank set three weaker daily fixings in a row.

Updated 4 days ago

Rule Changes

Explaining the transmission change

China's central bank now sets the price of overnight money every business day. On Nov. 2, the People's Bank of China made its first daily overnight reverse repo operation at 1.25%, replacing the seven-day rate it had used as its main policy signal.

Updated Nov 2