The offshore yuan stabilized around 7.34 per dollar as investors are closely monitoring the prospects of further monetary easing by the People's Bank of China, with speculation mounting over a potential cut in banks' reserve requirements. On Thursday, State media reported that the central bank might reduce the reserve requirement ratio ahead of the upcoming Spring Festival, which begins on January 28. Such a move would aim to alleviate the seasonal liquidity pressures typically associated with the holiday period. However, the central bank's ability to ease policy further may be constrained by the yuan's ongoing weakness. Meanwhile, investors look ahead to key economic data scheduled for release later this week. The focus is on China’s Q4 GDP, along with updates on industrial production, retail sales, and the unemployment rate, all expected to provide deeper insights into the country’s economic health.
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