The reporter learned from the People's Bank of China on the 25th that in order to improve the ability of financial institutions to use foreign exchange funds, the People's Bank of China decided to reduce the foreign exchange deposit reserve ratio of financial institutions by 1 percentage point from May 2022, that is, the foreign exchange deposit reserve ratio was reduced from the current 9% to 8%.

Reportedly, the foreign exchange deposit reserve ratio refers to the ratio of the foreign exchange deposit reserve deposited by financial institutions in the People's Bank of China to the foreign exchange deposits absorbed by them.