The People's Bank of China (PBOC) said on September 26th 2022 it would raise the foreign exchange risk reserves for financial institutions when purchasing FX through currency forwards to 20 percent from the zero, starting on September 28. The reserve ratio has been zero since 2020. PBOC had lifted the risk reserves for foreign-exchange forward trading from zero to 20 percent in 2015, before lowering it two years later and raising it again in 2018. The announcement marks the latest policy measure to stem the faltering currency after the PBOC announced it will lower the amount of foreign exchange that financial institutions must hold as reserves earlier this month. The PBOC said in online statement that the move aims to stabilize foreign exchange market expectations and strengthen macro-prudential management.
Risk Reserve Ratio Forward FX Sales in China averaged 11.18 percent from 2015 until 2022, reaching an all time high of 20 percent in August of 2015 and a record low of 0 percent in February of 2015. This page includes a chart with historical data for China Risk Reserve Ratio Forward Fx Sales. China Risk Reserve Ratio for Forward FX Sales - values, historical data and charts - was last updated on March of 2023.