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China to raise FX reserve requirement to slow yuan’s rally

The yuan has gained more than 5% against the dollar so far in 2026.

  • China raises FX reserve requirement ratio by 2 percentage points to 6%.
  • Move aims to slow yuan's rally and withdraw $24 billion from financial system.
  • PBOC estimates policy will curb yuan's record 0.37% weakening against dollar.

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