Economy

China relaxes foreign exchange regulations in response to Fed rate hike – Financial Times

China relaxes foreign exchange regulations in response to Fed rate hike – Financial Times

(Reuters) – Officials from the State Administration of Foreign Exchange (SAFE) privately reported the easing of unofficial restrictions on transactions in China’s interbank market to foreign exchange brokers on Wednesday last week due to the Federal Reserve’s 0.75 percentage point rate hike. The Financial Times reported, citing two people familiar with the matter.

The report added that the sharp drop in the renminbi last week began after regulators told traders that they were relaxing forex trading limits.

The report, citing one person, said the move to ease came because policy makers “believed that this was the right time to let the renminbi depreciate a bit.”

READ ALSO :   Permanent shifts in inflation could mean more volatile policy - Barkin from the Fed

The Latest

To Top