PBOC halted yuan depreciation, room to cut rates – Goldman Sachs

By FXStreet FXStreet (Bali) – A Bloomberg article cites Goldman Sachs’s Economist Song Yu, who notes that the PBOC measures have halted the yuan depreciation, which now allows further room to cut rates, as policy makers are feeling less pressure and have more room to do what they want, the China-based Economist added.

Among the actions taken by the PBOC to support the Yuan, include:

Intervention through sales of USD/CNY

Introducing new reserve requirements for forwards

Making special checks of foreign-exchange trading

Assistance of disappointing U.S. economic data reducing the chances of a Federal Reserve interest-rate increase this year

verbal support

Stronger settings for the yuan in the daily reference rate setting
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Source:: FX Street