PBoC Slashes FX Risk Reserves: China Moves to Curb Yuan Strength and Boost Liquidity

In a significant policy shift aimed at easing the upward pressure on the Renminbi, the People’s Bank of China (PBoC) announced on Friday, February 27, 2026, that it will eliminate the foreign exchange risk reserve ratio for forward sales. Starting March 2, 2026, the ratio will be lowered from 20% to 0%.