What does the foreign exchange reserve rate mean?
The foreign exchange deposit reserve ratio refers to a certain proportion of foreign exchange deposits absorbed by financial institutions in accordance with regulations and deposited in the People's Bank of China. The foreign exchange deposit reserve ratio refers to the ratio of foreign exchange deposits deposited by financial institutions in the People's Bank of China to absorbed foreign exchange deposits, which is mainly used to adjust the RMB exchange rate and stabilize the market.
For example, if a bank receives a foreign exchange deposit of 100 yuan, it needs to hand over the 20 yuan to the central bank, and the foreign exchange deposit reserve ratio is 20%. If a foreign exchange deposit of 100 yuan is handed over, the deposit reserve ratio is 10%.
What does it mean to lower the deposit reserve ratio?
Reducing the deposit reserve ratio, on the one hand, reduces the bank's wealth management yield to a certain extent, resulting in a decrease in income, and on the other hand, increases the demand for bonds. In a bad economy, banks generally reduce loan funds, but may buy bonds, so the interest rate of bonds may fall.
But don't worry too much. If you find that the bank's wealth management income has decreased, or you are afraid of losses, you can take it out and deposit it as a time deposit. Time deposits are guaranteed capital and interest, so don't worry about safety.