6 Hrs
Source:
الاقتصادية
Source: الاقتصادية
6 Hrsالاقتصادية
Source: الاقتصادية
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The People’s Bank of China raised the reserve requirement ratio on foreign-currency deposits held by financial institutions from 4% to 6%, effective November 15, 2026. The move aims to manage liquidity and curb the yuan’s rapid appreciation; the currency gained 4.2% in the first nine months of the year. The decision could withdraw around $24 billion in foreign-currency liquidity from the financial system, potentially affecting the availability and cost of funding for banks, as well as financing and hedging costs and exchange-rate expectations for investors and businesses. It does not change the rules for settling trade payments or require the use of the yuan instead of the dollar. Its actual impact will depend on trade and capital flows and currency trends.
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