Latest news and articles about forward contracts
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The People’s Bank of China will cut the foreign-exchange risk reserve requirement for forward FX sales from 20% to zero from 2 March 2026 to promote market development and corporate hedging. The move lowers banks’ capital costs for offering forwards, aims to deepen the hedging market and reduce balance-sheet currency risk, but carries risks of larger speculative forward positions if not paired with prudent risk controls.
