Chinese Central Bank Cuts Forex Deposit Reserve Ratio

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The People’s Bank of China (PBOC) has announced a reduction in the foreign exchange deposit ratio for Chinese financial institutions.

Starting from 15 May, the forex deposit reserve ratio for Chinese financial institutions will fall 1 basis point to 8% from 9% at present.

PBOC said that the move is to increase the ability of financial institutions to make use of foreign exchange funds.