On February 27th, the People’s Bank of China announced a major policy: starting from March 2nd, 2026, it will reduce the foreign exchange risk reserve ratio for forward foreign exchange sales business from 20% to 0. This measure aims to adjust the supply and demand of the foreign exchange market, stabilize exchange rate expectations, and reduce the cost of exchange rate risk management for enterprises.

It is reported that since the Spring Festival, the RMB against the US dollar has continued to appreciate, achieving five consecutive gains since February 20th. The offshore RMB against the US dollar has risen by more than 600 basis points, a increase of nearly 1%. On February 26th, the offshore RMB against the US dollar once fell below the 6.83 integer mark, hitting a new low in nearly 3 years. This policy adjustment is a macro-prudential regulatory measure taken by the central bank in response to changes in the market environment, releasing a signal to curb the excessive appreciation of the RMB and support enterprises in coping with exchange rate fluctuations.

Dong Ximiao, chief economist of China Merchants Union Consumer Finance, said that reducing the forward foreign exchange sales risk reserve ratio can effectively reduce the cost for enterprises to handle forward foreign exchange sales business, encourage enterprises to better manage exchange rate risks, and help foreign trade enterprises operate stably. Affected by the appreciation of the RMB, many listed companies such as Satellite Chemical and Sun Paper have responded, stating that the appreciation is expected to reduce procurement costs and improve corporate profitability.

Industry insiders analyzed that this policy adjustment balances market flexibility and regulatory pertinence. In the future, the central bank may dynamically optimize regulatory tools according to the exchange rate trend, maintain the stable operation of the foreign exchange market, and create a favorable exchange rate environment for the development of the real economy.