PBOC imposes a 20% Risk Reserve Requirement on forward FX sales

People's Bank of China with a step to slow the slump in the yuan.

  • will reinstate foreign exchange risk reserves for some forwards contracts
  • to 20%
  • beginning September 28
  • the PBoC dropped this requirement back in October 2020

Doing so will make bets shorting yuan more expensive at the margin.

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