PBOC to raise reserve requirement ratio on foreign exchange deposits by 2 percentage points
The People’s Bank of China (PBOC) announced on Tuesday that it would raise the reserve requirement ratio on foreign exchange deposits by 2 percentage points.
The ratio would be 6 per cent, effective November 15, the central bank said in a statement, calling it a move to strengthen liquidity management of financial institutions.
The move, requiring banks to hold a larger share of their foreign currency deposits in reserves at the central bank, is expected to tighten onshore foreign-currency...