PBOC Boosts FX Forwards Trading Reserve Requirement to 20%

PBOC Boosts FX Forwards Trading Reserve Requirement to 20%

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The Bank of China has increased the FX forward reserve requirement to 20%, impacting US currencies and the offshore yuan rate. Richard Jones, a Bloomberg strategist, discusses the expected pullback in the dollar and its broader impact on other major currencies. The move is seen as part of the PBOC's ongoing efforts to manage speculation on the offshore yuan, though the exact outcomes remain uncertain.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What speculation has the PBOC attempted to squash in the past?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What challenges does Richard Jones mention regarding the current currency market situation?

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