China Moves to Curb Yuan's Gain by Lifting FX Reserve Ratio

The transcript discusses the People's Bank of China's (PBOC) response to the yuan's appreciation, highlighting their discomfort with its strength. The PBOC has taken measures to put downward pressure on the yuan by requiring banks to hold more dollars. Analysts believe these actions may not significantly curb the yuan's appreciation, especially with upcoming Federal Reserve rate hikes and potential PBOC easing. The PBOC has various tools to manage the currency, including influencing daily fixing quotes and facilitating capital outflows. The situation remains dynamic, with future actions uncertain.

Discuss the significance of the yuan touching its May 2018 highs.

What are analysts predicting regarding the yuan's appreciation in the new year?