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Economics

PBOC Could Sell Yuan as Way to Boost Economy, Nomura’s Lu Says

  • Forex positions jumped by the most in November since Oct. 2015
  • Selling yuan will also help slow currency’s relentless advance

The People’s Bank of China could bolster liquidity in the banking system by selling yuan, which will help lower borrowing costs while stemming the currency’s gains, Nomura Inc. said. 

The central bank needs more aggressive steps to tackle China’s slowing economy, and swapping the yuan for foreign exchange is its best option, according to Nomura’s chief China economist Ting Lu.