The PBoC’s description of the level of liquidity in China as being at “reasonable levels”, despite still relatively high inter-bank funding rates led to some weight on global risk sentiment overnight. The PBoC asked local banks to manage their liquidity more prudently while suggesting that large local banks should be more active in supporting the liquidity of domestic markets, suggesting that the PBoC would not provide the liquidity some hoped for.
Read full report: FX Daily
Scotiabank