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The central bank's cut to banks' reserve requirement ratio (RRR) by 50 basis points on Monday will inject an estimated $100 billion cash into the economy.
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Updated : Mar 21, 2018, 04:22 AM IST
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The People's Bank of China (PBOC) set its official midpoint rate of yuan slightly stronger at 6.5385 per US dollar prior to the market open on Tuesday, a day after it had resumed its easing cycle in the face of mounting pressure on the economy.
On Monday, the currency fixing was set at 6.5452.
ALSO READ: China stocks up intraday on central bank easing, weak data caps rally
The Chinese stock investors on Tuesday gave a lukewarm welcome to the central bank's latest monetary policy easing move, as disappointing manufacturing and service sector surveys continued to curb risk appetite.
The central bank's cut to banks' reserve requirement ratio (RRR) by 50 basis points on Monday will inject an estimated $100 billion (nearly Rs 6.83 lakh crore) worth of long-term cash into the economy.
Increased money supply will typically put downward pressure on a country's currency, but the PBOC has been taking a slew of measures to cushion the impact of its easing steps on the yuan since early January.
