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Bloomberg came out with the news of additional measures by China to help the small and medium-sized businesses affected due to the deadly coronavirus. The report relies on the joint report by China Banking and Insurance Regulatory and the People’s Bank of China (PBOC) that said Qualified small- and medium-sized businesses nationwide with principal or interest due between Jan. 25 and June 30 can apply to delay repaying their debt.

Key quotes

The push by banks and regulators to tamp down NPLs is part of a broader effort by President Xi Jinping’s government to shore up the Chinese economy, which some forecasters saying it may suffer a rare quarter-on-quarter contraction in the first three months of 2020. 

FX implications

While the news failed to portray any major market reaction, it does contribute to the broad risk-off. That said, the USD/JPY and the AUD/USD keeps portraying the risk aversion while being under pressure around 107.40 and 0.6470 by the press time.