The focus of today's Asian session focused on the Chinese yuan, which showed a 17-month decline after the central bank cut the foreign exchange reserves requirement ratio.
Over the weekend, the People’s Bank of China (PBOC) announced it would reduce its needs reserve ratio to zero by 20%, for some foreign exchange futures trading, effective Monday.
An effective reduction in the depreciation of the yuan was made after the currency exhibited significant recent strengthening.
At the opening of today's Asian session, the yuan opened at 6.7268 against the US dollar and declined lower to 6.7198 after recording the biggest rise since 2005 on Friday.
Following the announcement, PBOC said it would continue to maintain flexibility in exchange rates, stabilize market expectations and ensure a stable and balanced yuan stability.
Meanwhile in a separate statement, PBOC Deputy Governor Fan Yifei today said his concern over the dispute between the United States and China could pose a significant risk to the security of the technology supply chain for China's financial network.
