China to start implementing RRR for some banks in offshore yuan market - PBOC

BEIJING, Jan 18 (Reuters) - China will start implementing a reserve requirement ratio (RRR) to some banks involved in the offshore yuan market, the People’s Bank of China (PBOC) said in a statement on Monday.

The statement confirmed a Reuters source-based story from Sunday. The sources said China’s central bank is preparing to raise the reserve requirement ratio for yuan deposits placed in yuan clearing banks in its latest bid to stem speculation in the currency.

The rate is currently at zero.

China’s central bank said the new RRR rules for the offshore yuan market would become effective on Jan. 25 and would not affect domestic liquidity.

The PBOC said it will continue to use multiple policy tools to maintain ample liquidity in the domestic banking system.

Reporting by the Beijing Monitoring Desk and Sue-Lin Wong