The People's Bank of China (PBOC) said in an online statement on Monday that it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 6% from 8% beginning September 15, per Reuters.

The central bank said that the move is aimed at slowing the pace of the yuan's recent depreciation and improving the forex capital capacity of financial institutions.

Market reaction

USD/CNY is largely unchanged on the above headlines, keeping its range around 6.9320, up 0.48% on the day.