China's central bank said on Friday it will cut the amount of foreign exchange that financial institutions must hold as reserves for the first time this year, a move seen aimed at slowing the pace of recent yuan depreciation. The People's Bank of China (PBOC) said it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 4 per cent from 6 per cent beginning Sept. 15, according to an online statement. The move was to "improve financial institutions' ability to use foreign exchange funds," the PBOC said. The FX RRR cut should also lower dollar funding costs in the interbank ... (full story)