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China's central bank to raise forex reserve requirement ratio to keep yuan stable

China's central bank will raise the foreign exchange reserve requirement ratio for financial institutions from 4% to 6%, effective November 15, 2026 — the first increase in nearly five years. The move forces banks to hold more foreign currency deposits at the PBOC, which drains U.S. dollar liquidity and is intended to slow the yuan's rapid appreciation. It signals that Beijing wants a stable, not strengthening, currency after a 4.2% rise against the dollar in the first nine months of the year.

USD/CNY Fixing Rate

This page explains how China sets the daily central parity rate (the 'fixing') for the yuan against the US dollar — the reference rate around which the currency is allowed to trade. Each morning the China Foreign Exchange Trade System polls market makers, strips out the highest and lowest quotes, and takes a volume-weighted average, with a 'counter-cyclical factor' added to dampen sentiment-driven swings. Nothing new is being announced here; it is a standing description of the mechanism, last updated in 2018/2021, so it is background reference material rather than a new rule.

China’s Macroprudential Management System: Development Practice and Future Evolution-Keynote Speech by Governor Pan Gongsheng at the Annual Conference of Financial Street Forum 2025

PBOC Governor Pan Gongsheng used a keynote at the Financial Street Forum to lay out how China will build a fuller "macroprudential" safety net over the financial system — the rules that watch for risks building up across banks, insurers, markets and cross-border flows rather than inside any single firm. He also confirmed near-term operational moves: monetary policy stays accommodative, the central bank will resume buying and selling government bonds, the digital yuan (e-CNY) gets a new cross-border hub in Shanghai, the long-standing crackdown on virtual-currency trading stays in force, and a one-off personal credit-record repair policy is planned for early next year. Because this is a speech rather than a published rule, it is a strong signal of direction but creates no immediate compliance obligation.

PBOC Holds Meetings in Sichuan and Shaanxi to Advance Payment Service Optimization

The People's Bank of China convened meetings in Chengdu and Xi'an on June 13-14, 2024, to push forward optimization of payment services in Sichuan and Shaanxi. The meetings frame payment facilitation — bank card acceptance, cash payment, mobile payment and account services — as a priority for elderly users and overseas visitors, and call for demonstration zones at airports, scenic spots and high-speed rail stations. No new binding rules were issued; the purpose was to coordinate local governments, regulators and financial institutions and to set expectations for sustained follow-up work.

China's central bank to raise forex reserve requirement ratio for financial institutions

China's central bank will require financial institutions to hold more reserves against their foreign currency deposits, lifting the foreign exchange reserve requirement ratio by 2 percentage points to 6 percent effective November 15. The move raises the cost of holding foreign currency liquidity inside China and is intended to tighten management of forex liquidity, effectively making it more expensive for banks to lend or arbitrage dollars. It is a technical monetary tool rather than a new market-entry or investment rule, but it can feed through to FX deposit rates, hedging costs and cross-border funding conditions for companies operating in China.

China issues revised administrative measures for outbound investment

China's top economic planner, the NDRC, has replaced its 2017 rules governing outbound investment with a revised set of administrative measures that take effect on December 1, 2026. The new rules confirm that domestic companies, individual residents and other organizations can all act as outbound investors, and they tighten the reporting requirements for major overseas losses and large reinvestment projects abroad. The change matters because it sets the procedural playbook Chinese investors must follow when putting money into projects outside China, and it signals Beijing's intent to protect overseas assets and manage risk while continuing to encourage global expansion.