Business · Markets · 1 hr ago
China's central bank decides to raise foreign exchange reserve ratio
China's central bank has decided to raise a reserve requirement for financial institutions.
The decision concerns the foreign exchange deposit reserve ratio.
This is a requirement linked to foreign currency deposits held by financial institutions.
The available information does not say how much the ratio will rise.
It also gives no effective date or explanation for the decision.
No further steps are stated.
The People’s Bank of China said it will raise the foreign-exchange reserve requirement ratio.
The change is set to take effect on Nov. 15.
Bloomberg reported that the offshore yuan weakened after the announcement.
Bloomberg said the yuan was headed for its first decline in almost three weeks.
- Who
- The People’s Bank of China.
- What
- It said it will raise the foreign-exchange reserve requirement ratio.
- When
- The change is set to take effect on Nov. 15.
- Where
- China; Bloomberg reported a reaction in the offshore yuan.
- Why
- Bloomberg described the move as an effort to cool the currency rally.
This story does not have two clearly opposing sides.
China News Service published a headline reporting that the central bank had decided to raise the foreign-exchange deposit reserve ratio.
Bloomberg reported that the PBOC’s announcement was followed by the offshore yuan weakening.
- Central bank
- People’s Bank of China
- Policy change
- Foreign-exchange reserve requirement ratio to rise
- Effective date
- Nov. 15
- Currency reaction
- Offshore yuan headed for its first decline in almost three weeks