PBoC: Raising reserve requirements for FX settlements in order to fend off financial risk

In a recently published statement, China's Central Bank said that the decision to raise the reserve requirements for forex settlements was aimed at fending off financial risks and promoting stable operations of financial institutions, as reported by Reuters.

PBOC further added: "Raising reserve requirements is a transparent, non-discriminatory, price-based counter-cyclical macro-prudential policy tool."