PBOC’s Sun: No need to lower regulatory requirement on banks' capital adequacy ratio

Dhwani Mehta FXStreet

There is no need to lower regulatory requirements on banks' capital adequacy ratio, said the People’s Bank of China (PBOC) Vice Governor Sun Guofeng on Tuesday.

He said that the central bank is still running internal tests of digital currency and that no official launch is scheduled.

Earlier today, the PBOC injected 250 billion yuan (about USD36.12 billion) into the market through seven-day reverse repos at 2.20%, and 50 billion yuan through 14-day reverse repos at 2.35%.

Market reaction

The risk sentiment remains buoyed amid US-China trade optimism, as markets ignore the above comments.

AUD/USD is off the highs but trades firmer around 0.7172, at the time of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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