The People’s Bank of China said on Sunday it would cut the reserve requirement rate – the amount of cash that some banks must hold as reserves by 50 basis points (bps), effective July 5. The rate cut would release CNY 500 billion in liquidity for the 5 large state banks and 12 national joint-stock commercial banks. The latest RRR cuts will also release about CNY 200 billion in funding for mid-sized and small banks to increase lending to small businesses, the PBOC said. The banks are also encouraged to use the extra liquidity to conduct debt-for-equity swap. The total liquidity injection of CNY 700 billion exceeds the market expectation of CNY 400 billion and hence could weigh over the Chinese currency. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Trump planning new curbs on Chinese investment in the US – WSJ FX Street 3 years The People's Bank of China said on Sunday it would cut the reserve requirement rate - the amount of cash that some banks must hold as reserves by 50 basis points (bps), effective July 5. The rate cut would release CNY 500 billion in liquidity for the 5 large state banks and 12 national joint-stock commercial banks. The latest RRR cuts will also release about CNY 200 billion in funding for mid-sized and small banks to increase lending to small businesses, the PBOC said. The banks are also encouraged to use the extra liquidity to conduct debt-for-equity swap.… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
