# The background to the PBOC’s surprise increase in foreign exchange reserve requirements

> China’s central bank will raise financial institutions’ foreign-currency deposit reserve ratio from 4% to 6% starting November 15. The measure is intended to absorb dollar liquidity and curb rapid yuan appreciation amid strong exports; the report estimates it could withdraw about $24 billion in foreign-currency liquidity.

- Date: 2026-11-07 · published 2026-11-08T00:09:46.654Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/86637-the-background-to-the-pboc-s-surprise-increase-in-foreign-exchange-reserve
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Reducing available dollar liquidity is intended to ease upward pressure on the yuan, which could help preserve Chinese exporters’ price competitiveness. Currency effects may influence import costs, but no direct feed-commodity supply or demand change is reported.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-10-10 | [Forex (Foreign Exchange) News: PBOC Lowers Risk Reserves Ratio for FX Forwards - Bloomberg](https://feedsoft.ai/events/5556-forex-foreign-exchange-news-pboc-lowers-risk-reserves-ratio-for-fx-forwards.md) | -0.2% | -1.0% |
| 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 | 2019-12-07 | [China's November foreign exchange reserves fall amid trade deal negotiations](https://feedsoft.ai/events/55803-china-s-november-foreign-exchange-reserves-fall-amid-trade-deal-negotiations.md) | -0.6% | -1.3% |
| USDCNY | 2017-12-05 | [Positive signs for China’s ability to rebuild foreign reserves \| ING THINK](https://feedsoft.ai/events/67712-positive-signs-for-china-s-ability-to-rebuild-foreign-reserves-ing-think.md) | -0.0% | -1.8% |
| USDCNY | 2019-05-23 | [Trade tensions are starting to pull foreign-exchange markets into the arena \| INTERNATIONAL MARKET NEWS - Business Standard](https://feedsoft.ai/events/59285-trade-tensions-are-starting-to-pull-foreign-exchange-markets-into-the-arena.md) | -0.1% | -0.8% |

## Sources

- dailian.co.kr: https://www.dailian.co.kr/news/view/1711917/%E4%B8%AD-%EC%9D%B8%EB%AF%BC%EC%9D%80%ED%96%89-%EC%99%B8%ED%99%94-%EC%A7%80%EC%A4%80%EC%9C%A8-%EC%A0%84%EA%B2%A9-%EC%9D%B8%EC%83%81%ED%95%9C-2026

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