China raises banks forex reserve ratio to 5 pct from 4 - sources |
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Published
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Tue, 08 May 2007 12:49
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SHANGHAI (XFN-ASIA) - China's central bank, the People's Bank of China, raised the amount of foreign currencies that lenders must hold as reserves, banking sources said.The forex reserve ratio was raised to 5 pct of foreign-currency deposits, effective May 15, from 4 pct previously, according to the sources, who had seen a copy of the central bank's memo to commercial banks on the subject.A spokesman for the PBoC declined to comment, saying the central bank had not issued a public statement concerning a change in forex reserve requirements.At the end of March, Chinese financial institutions held the equivalent of 164.9 bln usd in foreign currency deposits. This means that they will be required to hold 8.245 bln usd in foreign currency reserves starting May 15, or 1.65 bln usd more than before./net
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China central bank says to raise banks reserve requirement ratio 50 basis points 