USD/CNY and USD/CNH climbed to 6.67 after the PBoC tightened reserve requirements to curb rapid yuan gains, a move Commerzbank views as a tactical adjustment rather than a trend reversal.
On 2026-11-04 the PBoC raised the FX reserve requirement ratio after a 13-session CNY winning streak, and USD/CNY bounced to 6.67. That policy step slows yuan appreciation and supports a higher USD/CNY near term, though Commerzbank calls it counter-cyclical and not a reversal of the appreciation trend.
It raised the FX reserve requirement ratio to slow rapid CNY gains after a 13-session winning streak.
USD/CNY bounced to 6.67 on the announcement.
On 2026-11-04 the PBoC raised the FX reserve requirement ratio after a 13-session CNY winning streak, and USD/CNH bounced to 6.67. The action slows yuan appreciation and supports a higher USD/CNH near term, but Commerzbank stresses it is counter-cyclical rather than a reversal of the appreciation trend.
It raised the FX reserve requirement ratio to slow rapid CNY gains after a 13-session winning streak.
USD/CNH bounced to 6.67 on the announcement.
The People’s Bank of China raised the FX reserve requirement ratio following a 13-session winning streak for the yuan. Commerzbank analysts characterize the move as a counter-cyclical measure intended to maintain two-way currency flexibility rather than a fundamental reversal of the yuan's appreciation trend.
The central bank acted to slow the rapid appreciation of the yuan following a 13-session winning streak and to preserve two-way flexibility in the currency market.
Both USD/CNY and USD/CNH pairs experienced a bounce, trading up to 6.67 immediately following the announcement.