# PBOC raises requirement for banks' forex deposits - Chinadaily.com.cn

> The PBOC raised the foreign-currency deposit reserve ratio for banks from 5% to 7%, effective June 15. The move is aimed at curbing sell-offs of foreign currency after the yuan hit a record high, and it is the first such increase since May 2007.

- Date: 2021-05-31 · published 2021-05-31T12:00:00.000Z
- Category: policy · region China · magnitude high
- Page: https://feedsoft.ai/events/47322-pboc-raises-requirement-for-banks-forex-deposits-chinadaily-com-cn
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Tighter dollar liquidity in China's onshore market can raise the cost of foreign-currency loans and may slow the yuan's climb. That affects the purchasing power of Chinese importers buying dollar-priced feed ingredients.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-06-18 | [Central bank targets exchange rate stability - Chinadaily.com.cn](https://feedsoft.ai/events/7118-central-bank-targets-exchange-rate-stability-chinadaily-com-cn.md) | +0.3% | +0.5% |
| USDCNY | 2020-04-19 | [China has sufficient soybean reserve, official says - Chinadaily.com.cn](https://feedsoft.ai/events/53635-china-has-sufficient-soybean-reserve-official-says-chinadaily-com-cn.md) | +0.1% | +0.4% |
| USDCNY | 2017-09-24 | [China wants to reduce control of changes in yuan's exchange rate - Chinadaily.com.cn](https://feedsoft.ai/events/69191-china-wants-to-reduce-control-of-changes-in-yuan-s-exchange-rate-chinadaily-com.md) | +1.0% | +0.7% |
| USDCNY | 2022-01-22 | [Yuan exchange rate seen staying stable - Chinadaily.com.cn](https://feedsoft.ai/events/43359-yuan-exchange-rate-seen-staying-stable-chinadaily-com-cn.md) | +0.3% | -0.2% |
| USDCNY | 2017-07-12 | [PBOC: China should expand Renminbi's trading band - People's Daily Online](https://feedsoft.ai/events/70197-pboc-china-should-expand-renminbi-s-trading-band-people-s-daily-online.md) | -0.8% | -1.4% |

## Sources

- chinadaily.com.cn: http://www.chinadaily.com.cn/a/202106/01/WS60b568fea31024ad0bac2a39.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.