China's central bank said it will raise the foreign-currency deposit reserve
ratio by 2 percentage points to 6% from 4%, effective November 15, 2026. China
Minsheng Bank chief economist Wen Bin said a large trade surplus and sustained
corporate foreign-exchange conversion demand have been the main drivers of
recent renminbi appreciation. The PBOC said the move will freeze roughly $20-25
bln of foreign-exchange liquidity at banks, help rebalance onshore FX supply and
demand, curb one-sided renminbi appreciation expectations and stabilize the
foreign-exchange market.
