
China’s central bank will raise the foreign-exchange reserve requirement for financial institutions by 2 percentage points, from 4% to 6%, effective November 15. The measure is expected to reduce available dollar liquidity in the banking system and temper one-way expectations of continued yuan appreciation.
Tighter onshore dollar liquidity may slow yuan gains and influence the cost of Chinese imports, including feed ingredients. The article says the adjustment is intended to moderate appreciation rather than reverse the yuan’s longer-term trend.
After 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.