# Nearly five years for the first time: central bank raises FX deposit reserve requirement ratio, offshore yuan falls over 280 points to touch 6.675

> The People's Bank of China announced it will raise the foreign-currency deposit reserve requirement ratio by 2 percentage points, from 4% to 6%, effective November 15, 2026, the first such increase since December 2021. Offshore yuan fell more than 280 pips intraday to 6.675 per dollar, and onshore yuan dropped below 6.67, more than 250 pips lower.

- Date: 2026-11-03 · published 2026-11-03T12:08:40.587Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/77536-nearly-five-years-for-the-first-time-central-bank-raises-fx-deposit-reserve
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The tighter reserve requirement drains dollar liquidity from Chinese banks and may weaken exporters' incentive to convert dollars, slowing yuan appreciation. For feed buyers, a firmer dollar against the yuan makes US commodity imports relatively more expensive for China, though the move is a currency-management step rather than a change in trade flows.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-10-11 | [Yuan off 17-month high after PBOC lowers forward reserve requirements \| The Sun Malaysia](https://feedsoft.ai/events/5559-yuan-off-17-month-high-after-pboc-lowers-forward-reserve-requirements-the-sun.md) | -0.2% | -1.0% |
| USDCNY | 2018-06-29 | [Renminbi Continues to Fall: Central bank sets yuan midpoint fixing against dollar at 6.6166 - CGTN](https://feedsoft.ai/events/64735-renminbi-continues-to-fall-central-bank-sets-yuan-midpoint-fixing-against.md) | +0.2% | +2.8% |
| USDCNY | 2018-06-29 | [Offshore yuan drops faster than onshore currency as trade war fears, central bank policies spook international investors \| South China Morning Post](https://feedsoft.ai/events/64732-offshore-yuan-drops-faster-than-onshore-currency-as-trade-war-fears-central.md) | +0.2% | +2.8% |
| USDCNY | 2023-03-20 | [China's yuan eases after reserve ratio cut; Fed decision in focus \| Financial Post](https://feedsoft.ai/events/37090-china-s-yuan-eases-after-reserve-ratio-cut-fed-decision-in-focus-financial-post.md) | -0.3% | -0.3% |
| USDCNY | 2020-03-30 | [China's overnight onshore dollar/yuan swap points fall to lowest level since 2007 \| Financial Post](https://feedsoft.ai/events/54321-china-s-overnight-onshore-dollar-yuan-swap-points-fall-to-lowest-level-since.md) | -0.0% | -0.2% |

## Sources

- finance.sina.com.cn: https://finance.sina.com.cn/roll/2026-11-03/doc-inixncmw2242108.shtml

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