China's central bank raised the foreign exchange reserve requirement ratio for financial institutions from 4% to 6%, effective Sunday. The move reduces the foreign currency available to lenders.
It is intended to ease appreciation pressure on the renminbi and keep the exchange rate stable.
Tighter FX liquidity can cushion the yuan against appreciation, which may slightly ease the cost of dollar-priced grain and oilseed imports for China, though the effect on commodity prices is limited.
After 991 past macro events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.