USD/CNH: Falls nearly 400 pips after PBOC headlines

By FXStreet FXStreet (Bali) – USD/CNH collapsed over 400 pips from 6.6180 NY close down towards 6.5720 after headlines in Bloombeg suggested that effective Jan 25th, the PBOC is set impose reserve ratio on offshore yuan accounts.

Reuters is now publishing further headlines on this matter, noting that “new RRR rules will not affect domestic liquidity, will continue to use multiple policy tools to maintain ample liquidity in domestic banking system.”

The sharp decline in USD/CNH has played a key role in the improvement of risk appetite in Asia today, with participants joining the bid in risky assets once the PBOX fix risk was out of the way, with another stable mid-point setting in USD/CNY bu the PBOC.
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Source:: FX Street