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China moves to rein in yuan rally as exports weaken

Central bank raises foreign-currency reserve requirement for first time in 14 years

Copper rods at a Vietnamese cable factory: Import prices are climbing amid a broad-based rise in international commodity markets.   © Reuters

BEIJING -- China has begun moving to curb the yuan's post-coronavirus rally as upward pressure on the currency starts to cut into exports, a crucial engine of economic growth.

The People's Bank of China said Monday it will raise the share of foreign-currency deposits that banks with branches in the country must set aside in reserve from 5% to 7% as of June 15. This marks the first increase in the foreign-exchange reserve requirement since 2007.

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