Sunday, June 08, 2008

China raises reserve ratio to 17.5%

CHINA'S central bank said today it will require commercial banks to set aside more money in reserves to curb excess liquidity, the tenth such increase this year as regulators continue their efforts to rein in investment.

The reserve ratio -- the amount of money a bank must deposit with the central bank -- will increase 0.5 percentage points on yuan deposits on June 15 and another 0.5 percentage points on June 25 to 17.5%, the People's Bank of China said on its Website this afternoon.

The reserve ratio in the earthquake-hit region will not be affected, PBC said.

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