The Renminbi exchange rates have rebounded, is there a possibility of a 500 billion liquidity release with reserve requirement cut in the third quarter?
1. Monetary policy also has a significant impact on exchange rates, and the implementation of monetary policy needs to take into account both internal and external balance, hence the need to consider exchange rates as an important factor; 2. The market expects that the Federal Reserve will cut interest rates within the year, with relatively limited internal and external constraints on our country's monetary policy, stabilizing exchange rates will marginally ease the constraints on loose monetary, 3. Several experts expect that reserve requirement ratio cuts are expected to be implemented in the third quarter, releasing 500 billion of liquidity if the cut is at 25 basis points.
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