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China to scrap reserve requirement on yuan forward settlement: sources
September 8, 2017 / 3:11 PM / 18 days ago

China to scrap reserve requirement on yuan forward settlement: sources

FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

SHANGHAI (Reuters) - China’s central bank plans to scrap reserve requirements for financial institutions settling foreign exchange forward yuan positions with effect from Monday, four sources with direct knowledge of the matter said on Friday.

Under current rules, financial institutions must set aside 20 percent of the previous month’s yuan forwards settlement amount as foreign exchange risk reserves.

The central bank did not have any immediate comment.

Reporting by Li Zheng, Zhang Jindong and John Ruwitch; Editing by Catherine Evans

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