RTTNews | Dec 9, 2021 10:27AM EST

10:27 Thursday, December 9, 2021 (RTTNews.com) - The People's Bank of China on Thursday raised the reserve requirement ratio, or RRR, on banks' foreign exchange deposits, reports said. The ratio was raised to 9 percent from 7 percent, effective December 15. The latest hike was the second this year. Earlier this week, the central bank had cut the RRR for major commercial banks by 50 basis points. The reduction will take effect on December 15.

The bank lowered the RRR for the second time this year in order to support economic growth that is widely expected to weaken at the end of the year.

The RRR cut is expected to release CNY 1.2 trillion in long-term liquidity.

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