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The People's Bank of China will raise the foreign exchange deposit reserve ratio for financial institutions from 4% to 6%, effective November 15. The move reduces the dollars banks can supply onshore and signals that Beijing wants to slow the yuan's appreciation.
Fewer onshore dollars can firm the dollar against the yuan and related Asian currencies, which raises the cost of US-priced feed imports into China. The direct liquidity effect is modest, so the price impact is limited.
investinglive.comNov 3, 2026After 31 past bullish policy events, Chinese Yuan (CNY per USD) moved a median -0.2% over 5 sessions (42% higher; middle half -0.4% 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.
