PBOC announces foreign exchange RRR cut

The People's Bank of China, the nation's central bank, announced on Monday that it would reduce the foreign exchange reserve requirement ratio by 2 percentage points to 6 percent on Sept 15.

Onshore and offshore exchange rates of the renminbi against the dollar strengthened after the PBOC's announcement.

The PBOC last cut the ratio in May by 1 percentage point, which has helped stabilize the foreign exchange market's expectations and alleviate the depreciation pressure of the renminbi against the dollar.