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MNI (Singapore)

The People’s Bank of China (PBOC) for the second time this year hiked banks' forex reserve requirement ratio, a move that likely seeks to dampen a rally that has seen the yuan surging to the highest level in more than three years.

EffectIve from Dec. 15, financial institutions must set aside as reserves 9% of their foreign currency deposits, up from 7% previously, according to a statement posted on the central bank's website on Thursday.

The change is made to enhance the management of banks' forex liquidity management, the central bank said.

The PBOC raised the same ratio by 2 percentage points on June 15, also to contain the yuan's gain. according to MNI's record.

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