CHINA PRESS: Yuan Stable Despite Expected RRR Cut

The yuan remains stable despite expectations the People’s Bank of China will cut banks’ reserve requirement ratio in coming days, The 21st Century Business Herald reported, citing CITIC Securities chief economist Ming Ming. He said a U.S. dollar rebound will not cause the yuan to break through its previous low due to the improving domestic economy, slowing capital outflows, and the backlog of year-end foreign exchange settlements. The article cited traders noting that the China-US interest rate differential is narrowing, giving no strong support to short the yuan even as the expected RRR will see a divergence in monetary policy between China and the US.