More steps to boost yuan supply likely

Reduced currency market intervention by China's central bank is fueling speculation it will cut lenders' reserve requirements for the first time in two years to boost the supply of yuan.

The nation's foreign-exchange reserves slid by a record $105.5 billion in the third quarter to $3.89 trillion as the People's Bank of China scaled back dollar purchases that add yuan to the financial system.

Major lenders will need to set aside 19.5 percent of deposits in reserve by June 30 and 19 percent by the end of 2015, down from 20 percent now, based on the median forecast in a Bloomberg survey published on Wednesday.