China to raise foreign-currency reserve requirement to slow yuan rally

The change will require financial institutions to hold more foreign currency as reserves. A Reuters calculation estimates it would withdraw an additional $24 billion from the financial system. After the announcement, the offshore yuan weakened as much as 0.3% to 6.6664 per dollar, while the onshore yuan fell as much as 0.37% to 6.6728. The yuan has gained more than 5% against the dollar in 2026.