China’s central bank will raise the foreign-exchange reserve requirement ratio for financial institutions by 2 percentage points, to 6% from 4%, effective November 15. The People’s Bank of China said the move is intended to strengthen management of foreign-exchange liquidity, while market analysts viewed it as an effort to slow the yuan’s recent appreciation by absorbing some available U.S. dollar liquidity. The adjustment is calculated to withdraw about $24 billion from the financial system. The offshore yuan fell about 0.3% to 6.66 per dollar on Tuesday after reaching an over-four-year high in the previous session. The currency has gained more than 5% this year, supported by stronger PBOC midpoint fixes, resilient exports, large trade surpluses and corporate foreign-exchange conversions. Shipments rose 36.3% year-on-year to $447.18 billion in September 2026, the fastest annual increase in seven months, as demand for electronics and semiconductors remained strong. The policy reverses the PBOC’s September 2023 decision to lower the ratio to curb yuan losses and capital outflows.