Some select Chinese banks involved in offshore yuan market will have to implement a reserve requirement ratio (RRR), the country’s financial regulator the People’s Bank of China said. The step is to control speculation in the currency. The new RRR rules for the offshore yuan market would become effective on 25 January and would not affect domestic liquidity. The regulator said it will continue to use multiple policy tools to maintain ample liquidity in the domestic banking system.
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