China's central bank ramped up measures to safeguard the yuan from further depreciation on Monday as the U.S. Dollar continued to strengthen on the Federal Reserve's tightening stance.
The People's Bank of China decided to raise the risk reserve requirement for banks' forward forex sales to 20 percent from zero. The new rate will take effect on September 28.
This foreign exchange risk reserves for financial institutions when buying forex through currency forwards were lowered to zero in October 2020.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.