PBOC Lowers Forex Risk Reserve Ratio for Forward Yuan Sales to Zero

The People's Bank of China (PBOC) has announced a significant adjustment to its foreign exchange risk reserve requirements for forward yuan sales. Effective March 2, 2026, the reserve ratio will be reduced from 20% to 0%.

This decision aims to foster further development of the foreign exchange market and provide businesses with enhanced tools to manage their currency exchange rate risks. The move is expected to contribute to a more stable and dynamic FX market environment for Chinese enterprises.

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