What is the significance of lowering the forward exchange risk reserve ratio again after three and a half years of using this tool?

What specific impacts will this adjustment have? It will help reduce the long-term foreign exchange purchase cost for enterprises. The central bank announced a reduction of the risk reserve ratio for forward foreign exchange sales from 20% to 0, which can lower the cost of long-term foreign exchange purchases for enterprises, increase their enthusiasm for conducting foreign exchange hedging in the purchasing direction, and also support enterprises in managing exchange rate risks with foreign exchange derivatives. When the reserve ratio is 20%, banks need to freeze $20 without interest to the central bank for every $100 of forward foreign exchange sales transactions, which increases the cost of long-term foreign exchange purchases. With the risk reserve ratio for forward foreign exchange sales reduced from 20% to 0, banks no longer need to freeze funds for this purpose, and the cost of long-term foreign exchange purchases will decrease. This is the central bank's second use of this tool in nearly 3.5 years, and the reduction of the risk reserve ratio for forward foreign exchange sales is essentially a reasonable withdrawal of previous measures to promote the return of foreign exchange policy to neutrality. It supports enterprises to better hedge against exchange rate risks. The reduction of the risk reserve ratio for forward foreign exchange sales this time will help financial institutions provide cost-effective exchange rate risk management products for enterprises. By 2025, the rate of enterprises hedging is expected to increase to 30%, and the proportion of goods trade settled in RMB is also expected to increase to nearly 30%. This means that approximately 60% of enterprises engaged in foreign trade exports will be less affected by exchange rate risks, and in the future, these percentages are expected to further increase, which also helps maintain exchange rate stability.