PBOC to cut forex reserve ratio by 2 percentage points

In this undated file photo, pedestrians pass the headquarters of the People's Bank of China in Beijing. (PHOTO BY KUANG DA / FOR CHINA DAILY)

BEIJING – China's central bank said on Monday that it will cut forex reserve requirement ratio for financial institutions by 2 percentage points from Sept 15.

The reserve requirement ratio will be reduced to 6 percent from the current 8 percent, the People's Bank of China said in a short notice on its website.

The move aims to improve the capacity of financial institutions to use forex funds, according to the notice.

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