To promote the development of the foreign exchange market and support enterprises in managing exchange rate risk, the People’s Bank of China has decided that starting from March 2, 2026, the foreign exchange risk reserve ratio for forward foreign exchange sales will be reduced from 20% to 0%. Next, the People’s Bank of China will continue to guide financial institutions to optimize their foreign exchange hedging services for enterprises and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
(Source: People’s Bank of China website)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Central Bank: Reducing the foreign exchange risk reserve requirement ratio for forward foreign exchange sales from 20% to 0
To promote the development of the foreign exchange market and support enterprises in managing exchange rate risk, the People’s Bank of China has decided that starting from March 2, 2026, the foreign exchange risk reserve ratio for forward foreign exchange sales will be reduced from 20% to 0%. Next, the People’s Bank of China will continue to guide financial institutions to optimize their foreign exchange hedging services for enterprises and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
(Source: People’s Bank of China website)