China's central bank raised the foreign-exchange reserve requirement ratio for financial institutions by 2 percentage points to 6%, effective Nov. 15, to tighten dollar liquidity and slow the yuan's rapid appreciation. The PBOC said the move improves foreign-exchange liquidity management. The offshore yuan weakened after the announcement; the dollar rose 0.3% to 6.6639 yuan, after touching 6.6666. Pinpoint Asset Management's Zhiwei Zhang said the speed of October's appreciation likely raised concerns in policy circles, noting China's economy depends heavily on exports. Beijing faces pressure from major trading partners to let the yuan strengthen faster but has signalled a preference for mild, gradual appreciation.
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