On February 27, the People's Bank of China announced that, in order to promote the development of the foreign exchange market and support enterprises in managing exchange rate risks, it has decided to lower the foreign exchange risk reserve ratio for forward foreign exchange sales from 20% to 0, effective March 2, 2026.
Going forward, the People's Bank of China will continue to guide financial institutions to optimize their exchange rate hedging services for enterprises and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
