China’s Central Bank to Raise FX Deposit Reserve Ratio by 2 Percentage Points Sunday

The timing is the story here: the PBOC is tightening the cost of holding foreign-currency deposits while the week's calendar is dominated by external data and Fed commentary, which suggests a defensive rather than proactive posture toward currency pressure. The measure lands on holders of FX deposits — corporates and households with dollar accounts — rather than on cross-border capital flows directly, so its bite depends on how much of that stock is rate-sensitive. Whether the ratio change is a one-off or the start of a broader sequence is the open question.