Checking in on China. Yesterday, the People’s Bank of China announced the fourth reduction in the required reserve ratio for banks this year, which translates to a roughly $100 billion liquidity injection for the economy. China’s finance minister was quoted in the People’s Daily as saying that China’s “active fiscal policy will become more active.” The Chinese yuan, which has declined about 9 percent on the dollar in the past six months, continues to weaken, falling to nearly 7 yuan to the dollar before recovering slightly. Official data also showed a $20 billion drop in foreign exchange reserves last month. Meanwhile, China’s foreign minister met with the U.S. secretary of state in Beijing today to try to find “the right path of win-win cooperation,” though there is little the two can talk about that will ease bilateral relations right now. China isn’t exclusively on the defensive, though. Data from the U.S. Census Bureau released last week showed that China halted
Daily Memo: A China Checkup, the Disappearance of a Saudi Journalist, the Unknown in Bosnia
All the news worth knowing today.