Central Bank: Starting March 2, the foreign exchange risk reserve requirement ratio for forward foreign exchange sales will be lowered to 0

The People’s Bank of China announced that to promote the development of the foreign exchange market and support enterprises in managing exchange rate risk, it has decided that starting from March 2, 2026, the foreign exchange risk reserve requirement ratio for forward foreign exchange sales will be reduced from 20% to 0%. Moving forward, the People’s Bank of China will continue to guide financial institutions to optimize their foreign exchange risk hedging services for enterprises and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

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