China's central bank announced on Friday that it will cut the foreign exchange (FX) risk reserve ratio for forwards trading to zero, in a move to bolster the development of the foreign exchange market.
The reserve requirement will be lowered from 20 percent to 0, effective from March 2, 2026, according to a statement from the People's Bank of China (PBOC).
The adjustment is aimed at supporting enterprises in their management of exchange rate risks, the PBOC said.
The bank added that it will continue to guide financial institutions to optimize currency risk hedging services for enterprises, in an effort to keep the Chinese yuan exchange rate generally stable at an adaptive and equilibrium level.
China's central bank cuts FX risk reserve ratio to zero
China's central bank cuts FX risk reserve ratio to zero
China's central bank cuts FX risk reserve ratio to zero
