ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Currencies

China moves to rein in yuan rally as exports weaken

Central bank raises foreign-currency reserve requirement for first time in 14 years

Copper rods at a Vietnamese cable factory: Import prices are climbing amid a broad-based rise in international commodity markets.   © Reuters

BEIJING -- China has begun moving to curb the yuan's post-coronavirus rally as upward pressure on the currency starts to cut into exports, a crucial engine of economic growth.

The People's Bank of China said Monday it will raise the share of foreign-currency deposits that banks with branches in the country must set aside in reserve from 5% to 7% as of June 15. This marks the first increase in the foreign-exchange reserve requirement since 2007.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more