PBOC Raises Foreign Exchange Required Reserve Ratio of Financial Institutions to 7% / BRC Calls on British Government to Extend Policy for Period of Delaying Rental Payment for Retailers

The People’s Bank of China (PBOC) announced that starting June 15, 2021, it will raise the foreign exchange required reserve ratio of financial institutions by 2 percentage points, from the current 5% to 7%. The last increase was in 2007, when the increase was 1%. As the foreign exchange deposit reserve is raised, it will increase the cost of foreign exchange purchases. The market estimates that this move means that the central bank intends to crack down on speculative activities in the renminbi and foreign exchange, or to reduce the recent speculation of the appreciation of the renminbi.

The British Retail Consortium (BRC) called on the British government to extend the policy of allowing retailers to postpone rent payments during the pandemic until the end of this year. Otherwise, beware of a flood of bankruptcies in British retailers. During the pandemic, in order to protect the retail industry in the UK, the British government announced that the landlord would not be able to recover the rent of the retailer during this period. However, the relevant actions will be completed by the end of June this year. The British Retail Association stated that some members have reported to them that the landlord has written to them to claim rent. However, because of the pandemic, British retailers need more time to earn back the rent owed in the past, which will undoubtedly cause huge pressure on local retailers.