In the Wall Street Journal: China Banks Request Cash-Crunch Relief
- Big banks in China are requesting the central bank there free up funds to ease the current cash squeeze
- Chinese banks calling for a cut in the reserve-requirement ratio (RRR)
“Internally, we’re hoping for an RRR cut by the end of Wednesday,” said a senior executive at one of China’s top four state-owned banks.
The dilemma facing the PBOC is recent comments from Chinese leadership indicating they are not overly concerned with the recent slowdown; any easing of policy (for example, a RRR cut) would run counter to this.
Traders of the AUD should be on the lookout for any sign of an easing in China, which would be AUD positive news.
(The Wall Street Journal is often gated, so if you’re unable to access the article try a search of Google news using the headline)
