Bloomberg report - citing four people familiar with the matter
In a big to stabilize the yuan, China's central bank will impose required reserve ratios on yuan deposits of offshore branches of mainland banks.
The move will take effect Jan 25.
One of the subplots last week was the surging HIBOR rate, which is the overnight rate in Hong Kong.
The idea with boosting the reserve ratio is that it makes borrowing the offshore yuan to short it a more expensive proposition. Watch out for yuan strength today and when the measures take effect.
