PBOC to Slash FX Risk Reserve Ratio Back to Zero
Posted on 10/10/2020
The People’s Bank of China (PBOC) plans to decrease the reserve requirement ratio for financial institutions when conducting some foreign exchange forwards trading to zero with effect from October 12, 2020. Under current rules, financial institutions are required to keep 20% of the previous month’s yuan forwards settlement amount as foreign exchange risk reserves. The […]
