To support the real economy and ensure that overall financing costs are stable with a slight decrease, the People’s Bank of China (PBC) is scheduled to lower the required reserve ratio by 0.5 percentage points effective as of July 15 (not applicable to financial institutions that already carry a required reserve ratio of five percent).
The action will reduce the weighted average required reserve ratio of financial institutions to 8.9 percent.
In light of rising costs for micro and small businesses (MSBs) caused by increasingly higher commodity prices this year, China continues to maintain the stability of its monetary policy.
$1 = RMB 6.4785