China will make banks hold 6% of foreign-currency deposits in reserve, up from 4%

The People's Bank of China says the move strengthens forex liquidity management; Reuters estimates it withdraws an extra $24 billion.

By James Mitchell · Nov 3, 2026, 1:10 AM EST

Why it matters: Banks will have to set aside more of their foreign-currency deposits, which Reuters estimates pulls an extra $24 billion from the financial system.

For information only, not investment advice.

China's central bank will raise the share of foreign-currency deposits banks must hold in reserve to 6% from 4% starting Nov. 15, Xinhua and Reuters reported. Reuters estimates it pulls an extra $24 billion from the financial system.

Sources

China's central bank to raise forex reserve requirement ratio for financial institutions, Xinhua
China to raise FX RRR to slow pace of yuan gains, Reuters (via Investing.com)

Tags: china

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