China s foreign exchange regulator Wednesday night expanded quotas under an outbound investment scheme to meet the growing demand of domestic investors.
A total of 10.3 billion U.S. dollars in quotas was granted to 17 institutions under the Qualified Domestic Institutional Investor (QDII) program, a scheme for outbound investment, according to the State Administration of Foreign Exchange (SAFE).
Among these institutions were fund companies, securities firms, insurers, and banks, said the regulator, adding that the move brought China s total QDII quota to 147.32 billion U.S. dollars.
Over the years, China has gradually normalized and accelerated the issuance of QDII quotas. Since September 2020, the SAFE has granted seven rounds of quotas to 173 institutions through the QDII scheme, official data showed.
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China s central bank has decided to increase the amount of foreign-currency deposits that financial institutions need to hold as reserves starting on June 15.
China s central bank has decided to increase the amount of foreign-currency deposits that financial institutions need to hold as reserves starting on June 15, a move aimed at curbing sell-offs of foreign currencies after the renminbi s value climbed to a record high.
The People s Bank of China announced the increase in the required reserve ratio on foreign exchange deposits in financial institutions to 7 percent from 5 percent, to improve forex liquidity management in financial institutions. The new policy will take effect on June 15, a statement said on Monday.
The last time the central bank did so was in May 2007, when it boosted the ratio to 5 percent from 4 percent. This tightened the supply of foreign currencies in the onshore market and increased the costs of foreign currency denominated loans, according to experts.
A rapidly rising renminbi may draw increased scrutiny in global financial markets, especially at a time when the US dollar is losing momentum.. Read more at straitstimes.com.