The central bank lowered the required reserve ratio for foreign exchange deposits to 6%.

Sep 5, 2022 15:47

The central bank stepped in to stabilize foreign exchange market expectations. On September 5, in order to enhance the ability of financial institutions to use foreign exchange funds, the central bank decided to lower the foreign exchange deposit reserve ratio of financial institutions by 2 percentage points from September 15, 2022, that is, the foreign exchange deposit reserve ratio from the current 8% to 6%. Wang Qing, chief macro analyst at Oriental Jincheng, said that it is expected that the depreciation of the RMB against the US dollar will be moderate in the next step, and a basket of exchange rate indexes will continue to be strong. In fact, under the background that the domestic economy as a whole is in a repairing situation and China's balance of payments will maintain a large surplus, the exchange rate factor will not substantially restrict the flexible adjustment of macro policies during the year. (Securities Daily)

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央行下调外汇存款准备金率至6%

The central bank lowered the required reserve ratio for foreign exchange deposits to 6%.

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