China Takes Its Most Visible Measure Yet to Curb Yuan’s Gain

The PBOC has increased the foreign exchange reserve requirement for financial institutions from 5% to 7% to curb the yuan's strength, which has reached a three-year high against the dollar. While some view this move as symbolic, the yuan's upward trajectory is supported by a substantial yield differential and a solid economic recovery. Analysts suggest further measures may follow to manage the yuan's value. Recent jawboning efforts by policymakers have aimed to weaken the yuan, and this reserve requirement increase is a concrete step in that direction.

What factors are contributing to the support of the yuan according to various banks mentioned in the text?

What actions were taken by an ex PBOC official and state media over the weekend regarding the yuan?