Chinese authorities issue new currency support to boost growth

Change to reserve requirement ratio

The People’s Bank of China has brought in new rules to support the country’s currency, as policymakers ramp up efforts to push China out of its soft period of growth.

In a statement today (1 September), the Chinese central bank said it would be cutting the reserve requirement ratio for foreign exchange deposits of financial institutions by two percentage points, bringing the rate down from 6% to 4%. The changes, which will come into effect on 15 September, are meant to "improve the ability of financial institutions to use foreign exchange funds", the central bank said. BofA: Investors lift economic expectations for Asia despite long-term concerns over China Upon its implementation, commercial banks will be able to cut the interest rates that...