China's central bank to cut forex reserve requirement ratio by 2 percentage points

File photo shows an exterior view of the People's Bank of China in Beijing, capital of China. (Xinhua/Peng Ziyang)

BEIJING, Sept. 1 (Xinhua) -- China's central bank said on Friday that it will cut forex reserve requirement ratio for financial institutions by 2 percentage points from Sept. 15.

The reserve requirement ratio will be reduced to 4 percent from the current 6 percent, the People's Bank of China said in a short notice on its website.

The move aims to improve the capacity of financial institutions to use forex funds, according to the notice.