PBOC to Raise FX Deposit Reserve Ratio to 6% from Nov 15

The signal matters more than the size: a higher FX deposit reserve ratio makes it costlier for banks to hold or channel foreign currency, a liquidity-management lever rather than a rate move, and the central bank frames it explicitly that way. It lands on financial institutions and their FX operations first, with any knock-on effects transmitted through bank balance sheets rather than directly to end users. Whether this proves a one-off adjustment or the start of a broader tightening in FX liquidity management is the open question worth watching as the November effective date approaches.