China’s central bank announced it will cut the FX reserve requirement ratio (RRR) by 200 bps to 4% starting September 15th. This move aims to bolster the yuan and the struggling Chinese economy, freeing up approximately USD 16.4 bln in foreign exchange. Recent yuan depreciation is also expected to continue. The local currency is one of the worst-performing Asian currencies this year, declining around 5% amid an economic downturn in the Chinese economy and widening yield differentials with the US.