China Raises Overseas Borrowing Cap to Bolster Weakening Yuan

What’s new: China has taken action to arrest the yuan’s slide.

The country raised the macroprudential parameter for financial institutions and nonfinancial businesses’ cross-border financing from 1.25 to 1.5 on Thursday, according to a joint announcement by the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange in the morning.

The onshore and offshore yuan both strengthened against the U.S. dollar following the announcement.