Tuesday, May 8, 2007

China Central Bank Raises Lenders' Foreign-Currency Reserve Requirement

(Bloomberg) -- China raised the amount of foreign currencies that lenders must keep as reserves and instructed them to strengthen management of such holdings, according to a notice issued by the central bank.

Banks must keep 5 percent of their foreign-currency deposits as reserves, up from 4 percent, according to a People's Bank of China circular to lenders obtained by Bloomberg News. The increase will take effect May 15, the circular said.


Read more at Bloomberg Currencies News

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