China reduces foreign exchange risk reserve ratio to zero

BEIJING, Sept. 11 (Xinhua) -- China's central bank has scrapped reserve requirements of 20 percent for financial institutions settling foreign exchange forward yuan positions, an official said Monday.

The foreign exchange risk reserve ratio was reduced to zero, according to Sun Guofeng, head of the PBOC financial research institute.

The adjustment was made as the current market environment has changed greatly, which means counter-cyclical macro-prudential policies have returned to neutral, Sun said.