9/14/2023, 1:18 PM (Source: TeleTrader)
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PBoC to slash banks' reserve ratio by 25 bps

People's Bank of China (PBoC) revealed on Thursday that it will be cutting the percentage of deposits commercial banks must keep in cash as a reserve by a quarter of a percentage point starting from September 15.

In a statement, PBoC explained that those banks that already put into place a 5% reserve ratio are exempt from the measure. "After this reduction, the weighted average reserve requirement ratio [RRR] of financial institutions will be approximately 7.4%," the bank added.

The move was made in an effort to boost the recovery of the country's economy, which has been struggling to fully get back on its feet following the COVID-19 pandemic.

Baha Breaking News (BBN) / AY