PBOC relaxes overseas funding as yuan drops

The People’s Bank of China (PBOC) said in a statement on Tuesday, it raised a parameter on cross-border corporate financing under its macro-prudential assessments to 1.25 from 1.

“Tuesday’s move will “increase the sources of cross-border funds for enterprises and financial institutions, and guide them to optimize the asset-liability structure,” the central bank said in an official statement published on its website.

Market reaction

USD/CNY caught a fresh bid wave and hit another record high at 7.3079 in the last hour. The pair is currently trading 0.61% higher on the day at 7.3075.