PBoC imposes reserve requirements on offshore deposits for first time
The new measure, designed to curb short-selling, shows the determination of China's central bank to stabilise the offshore market in the wake of recent gyrations
The People's Bank of China (PBoC) is to impose reserve requirement ratios (RRR) on offshore renminbi deposits for the first time as it attempts to counter speculation against the currency.
The move could drain away liquidity in the offshore renminbi, while also harming trading conditions in the onshore currency as the measure dampens the appetite of offshore banks to place deposits onshore, analysts say.
The reserve requirements, which have yet to be revealed, will be imposed on offshore banks'
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